Arrange the following steps in the procedure of share issues in the correct sequence:
(A) Receipt of Applications
(B) Allotment of Shares
(C) Issue of Prospectus
(D) Listing on the Stock Exchange
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (C), (A), (B), (D)
Shares are issued to the public through a fixed procedure, each stage depending on the one before it.
(C) Issue of Prospectus — the company first invites the public to subscribe by issuing a prospectus with full information about itself and the issue.
(A) Receipt of Applications — investors then apply for shares and deposit the application money with the bank named in the prospectus.
(B) Allotment of Shares — once minimum subscription is received, the company allots the shares, and the applicants become shareholders.
(D) Listing on the Stock Exchange — only allotted shares exist to be traded, so they are listed on the stock exchange last, after which they can be bought and sold there.
NCERT (2026-27 edition):
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