MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Undersubscription

A company iss...

Question

A company issued 10,000 shares to the public and the company received applications for 8,000 shares from the public. This situation is called ?

A

Under subscription of shares

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Call in Arrear

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Default by share holder

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Call in Advance

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
Under subscription of shares

A company issued 10,000 shares to the public and the company received applications for 8,000 shares from the public. This situation is called under-subscription of shares.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Public companies issued shares to public through document called ________________.

Q. Bhuvan Ltd. issues 5,00,000 shares of 310 each for public subscription. Application along with money was received for 4,00,000 shares. Can company allot these shares? Explain.

Q. A company offered 2,00,000 shares for subscription to the public, but the applications were received for 1,90,000 shares only. The allotment will be confirmed to _________ shares.

Q. When a company receives application for subscriptions to the shares of the company much more than the issued capital, the issue is called __________.

Q. When applications for more shares of a company are received than the number offered to the public for subscription, it is known as .

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Mismatch in Demand and Supply

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Undersubscription

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon