Match the following lists regarding the sequence of receiving of money on shares.
| LIST 1 |
LIST 2 |
| A) First | I) Share second and final call |
| B) Second | II) Share first call |
| C) Third | III) Share Allotment |
| D) Last | IV) share application |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- A)-IV, B)-III, C)-II, D)-I.
| LIST 1 |
LIST 2 |
| A) First | IV) share application |
| B) Second | III) Share Allotment |
| C) Third | II) Share first call |
| D) Last | I) Share second and final call |
* First - Share application: This is the initial stage where potential investors express their interest and apply to purchase shares in the company with application money.
* Second - Share Allotment: After receiving applications, the company decides how many shares to allocate to each applicant. After final allotment of shares the investors becomes shareholders and allotment money is received from them.
* Third - Share first call: Once shares are allotted, the company "call for payment", that shareholder need to pay on shares.
* Last - Share second and final call: This is the final payment required from investors to fully own their shares.