Which of the following define the given statement 'Appropriation of a certain number of shares is made to an applicant in response to his application'?

Share allotment

The correct answer is option 4- Share allotment.

Share allotment is defined in the given lines.

The given statement describes the process where a certain number of shares are allocated to an applicant in response to their application.

* When minimum subscription has been received and certain legal formalities on the allotment of shares have been duly compiled with, the directors of the company proceed to make the allotment of shares. The allotment of shares implies a contract between the company and the applicants who now become the allottees and assume the status of shareholders or members.