_________ is a situation where number of shares applied are less than the number for which applications have been invited for subscription.

Over Subscription

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Under Subscription

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Fully Subscribed

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Partly Subscribed

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Solution

The correct option is B Under Subscription
Under subscription is a situation where number of shares applied for is less than the number for which applications have been invited for subscription. For example, a company offered 2,00,000 shares for subscription to the public but the applications were received for 1,90,000 shares only. In such a situation, the allotment will be confirmed to 1,90,000 shares and entries shall be made accordingly.

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