CUET Preparation Today
| If the public applies for more shares than the shares offered to the public for subscription by the company, then the situation created is called: |
Under subscription Over subscription Pro-rata allotment None of these |
| Over subscription |
| There are instances when applications for more shares of a company are received than the number offered to the public for subscription. This usually happens in respect of shares issue of well-managed and financially strong companies and is said to be a case of ‘Over Subscription’. |
