Identify the steps of the procedure of share issue:
(A) Allotment of Shares
(B) Receipt of Applications
(C) Issue of Prospectus
(D) Share Call
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (C), (B), (A), (D)
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Issue of Prospectus (C) → The company first issues a prospectus to invite the public to apply for shares.
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Receipt of Applications (B) → Applications are received from prospective shareholders along with application money.
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Allotment of Shares (A) → Shares are allotted to applicants, and allotment money is called.
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Share Call (D) → The remaining balance is collected through calls (first call, final call, etc.).