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Arrange the following steps as per the procedure of issue of shares:
A. Receipt of applications
B. Allotment of shares
C. Reissue of forfeited shares
D. Issue of prospectus
E. Forfeiture of shares
Choose the correct answer from the options given below:
  • a)
    A, B, C, D, E
  • b)
    B, A, D, C, E
  • c)
    D, A, B, E, C
  • d)
    A, B, E, D, C
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Arrange the following steps as per the procedure of issue of shares:A....
Issue of Shares Procedure:

Receipt of applications:
- The first step in the issue of shares process is to receive applications from interested investors who want to purchase shares in the company.

Allotment of shares:
- After receiving applications, the company will allot shares to the applicants based on certain criteria. This step involves the company determining how many shares each applicant will receive.

Reissue of forfeited shares:
- In case some shareholders fail to pay the amount due on their shares, the company may forfeit their shares. These forfeited shares can be reissued to new investors through a reissue process.

Issue of prospectus:
- Before issuing new shares to the public, the company must prepare and issue a prospectus. This document contains important information about the company, its financial status, and the terms of the share issue.

Forfeiture of shares:
- If a shareholder fails to pay the amount due on their shares, the company may decide to forfeit those shares. This action can be taken by the company as a consequence of non-payment by the shareholder.
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Community Answer
Arrange the following steps as per the procedure of issue of shares:A....
Correct sequence issue of prospectus. Receipt of application.
Allotment of shares, Forfeiture, Reissue.
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Arrange the following steps as per the procedure of issue of shares:A. Receipt of applicationsB. Allotment of sharesC. Reissue of forfeited sharesD. Issue of prospectusE. Forfeiture of sharesChoose the correct answer from the options given below:a)A, B, C, D, Eb)B, A, D, C, Ec)D, A, B, E, Cd)A, B, E, D, CCorrect answer is option 'C'. Can you explain this answer?
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