A public company has 1 lakh shares for public subscription- Which of the following situation is depicted in the table shown below- beginarray - c - c - c -Whine Person - Shares AppliedWhine 1 - 25 kWhine2 - 25 kWhine3 - 25 k Whine array A- Under-subscriptionB- Ideal subscriptionC- None of the aboveD- Over-subscription

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Standard XI

Business Studies

Subscription Rule

A public comp...

Question

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

Over-subscription

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Under-subscription

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Ideal subscription

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None of the above

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Solution

The correct option is B
Under-subscription

This corresponds to under-subscription because the company offered 1 lakh shares but only 75k shares were applied. When people apply for fewer shares than what the company had offered, it depicts the case of under-subscription.

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A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below? PersonShares Applied125k225k325k

The correct option is B Under-subscription This corresponds to under-subscription because the company offered 1 lakh shares but only 75k shares were applied. When people apply for fewer shares than what the company had offered, it depicts the case of under-subscription.

A public company has 1 lakh shares for public subscription. Which of the following situation is depicted in the table shown below?

$\begin{matrix} P e r s o n & S h a r e s A p p l i e d 1 & 25 k 2 & 25 k 3 & 25 k \end{matrix}$

The correct option is B
Under-subscription

This corresponds to under-subscription because the company offered 1 lakh shares but only 75k shares were applied. When people apply for fewer shares than what the company had offered, it depicts the case of under-subscription.