CAPITAL SUBSCRIPtion
bankers of company receive application money ? what is application money referred for? BST

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Solution

Company raises capital from people through issue of shares. But when a person applies for shares of certain companies, they do so by paying a small part of share price. It may be Rs2/3/4 per share depending upon the policy of company. This amount paid by investor is called Application Money. so, It is that Money paid by investor to apply for the shares of the company.

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CAPITAL SUBSCRIPtionbankers of company receive application money ? what is application money referred for? BST

CAPITAL SUBSCRIPtion
bankers of company receive application money ? what is application money referred for? BST