Arrange the following related to issue of shares in the correct sequence:
(A) Allotment of Shares
(B) Issue of Prospectus
(C) Receipt of Applications
(D) Remaining amount of shares on call (if any)
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B), (C), (A), (D)
A share issue moves through these steps in order:
(B) Issue of Prospectus
(C) Receipt of Applications
(A) Allotment of Shares
(D) Remaining amount of shares on call (if any)
The balance of the share amount is collected in calls only after allotment, because a person becomes a shareholder, and owes the calls, only once shares are allotted to him.
NCERT (2026-27 edition):
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