Practicing Success
Match the following-
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(A)-(II), (B)-(IV), (C)-(III), (D)-(I) (A)-(II), (B)-(I), (C)-(IV), (D)-(III) (A)-(I), (B)-(II), (C)-(IV), (D)-(III) (A)-(II), (B)-(III), (C)-(IV), (D)-(I) |
(A)-(II), (B)-(I), (C)-(IV), (D)-(III) |
* Over subscription occurs when there is a greater demand for a company's shares than the available supply. It means shares applied by the persons are more than the shares offered. This often happens when the company is financially strong and well-managed, attracting eager investors. To address over subscription, companies have three primary options: Accept some applications in full while rejecting others. Implement a pro-rata allotment, where each applicant receives a portion of the shares they applied for, ensuring some allocation to all investors, even if not the full amount. Utilize a combination of the first two approaches, which is the most commonly chosen method. |