Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
When the number of debentures applied are less than the number offered for issue , it is called as?
Options:
Under Subscription
Over subscription
Undervalued
None of the above
Correct Answer:
Under Subscription
Explanation:
Under Subscription is referred to as the situation where the number of shares applied by the public is less then the shares that are issued by the company. Companies that have just started or lack a good reputation will experience under-subscription.