Commerce Exam > Commerce Videos > Accountancy Class 12 > Over Subscription of Shares: Rejection of Excess Applications
Over Subscription of Shares: Rejection of Excess Applications Video Lecture | Accountancy Class 12 - Commerce
|
47 videos|117 docs|56 tests
|
FAQs on Over Subscription of Shares: Rejection of Excess Applications Video Lecture - Accountancy Class 12 - Commerce
| 1. What is over-subscription of shares? |  |
Ans. Over-subscription of shares refers to a situation where the number of applications received for purchasing shares exceeds the number of shares available for allocation. This typically occurs when a company issues new shares to the public or existing shareholders, and the demand for those shares exceeds the supply.
| 2. What happens if there is over-subscription of shares? | |
Ans. When there is an over-subscription of shares, the company may have to reject excess applications and allocate shares on a pro-rata basis. This means that each applicant will receive a proportionate allocation based on the number of shares they applied for relative to the total demand. The company will refund the excess application money to those whose applications were rejected.
| 3. How does a company decide which applications to reject in case of over-subscription? | |
Ans. In case of over-subscription, a company may use different methods to decide which applications to reject. They may prioritize existing shareholders, employees, or other specific groups before considering applications from the general public. The company may also consider factors like the size of the application, the applicant's history with the company, or use a lottery system to determine the allocation of shares.
| 4. Can I apply for more shares than what is available during an over-subscription? | |
Ans. Yes, you can apply for more shares than what is available during an over-subscription. However, if the demand exceeds the supply, the company will only allocate shares on a pro-rata basis, and you may receive a proportionate allotment based on the total demand. The excess application money for the unallocated shares will be refunded to you.
| 5. How can I increase my chances of getting a higher allocation of shares during an over-subscription? | |
Ans. To increase your chances of getting a higher allocation of shares during an over-subscription, you can consider applying for a larger number of shares. However, it is important to note that the final allocation is based on the total demand and the company's allocation policy. Additionally, being an existing shareholder or having a good relationship with the company may also increase your chances of receiving a higher allocation.
About this Video
|
1.3K Views |
|
4.75/5 Rating |
|
Oct 23, 2024 Last updated |
Video Description: Over Subscription of Shares: Rejection of Excess Applications for Commerce 2024 is part of Accountancy Class 12 preparation.
The notes and questions for Over Subscription of Shares: Rejection of Excess Applications have been prepared according to the Commerce exam syllabus.
Information about Over Subscription of Shares: Rejection of Excess Applications covers all important topics for Commerce 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Over Subscription of Shares: Rejection of Excess Applications.
Introduction of Over Subscription of Shares: Rejection of Excess Applications in English is available as part of our Accountancy Class 12 for Commerce & Over Subscription of Shares: Rejection of Excess Applications in
Hindi for Accountancy Class 12 course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for Over Subscription of Shares: Rejection of Excess Applications Video Lecture | Accountancy Class 12 - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Accountancy Class 12.
Information about Over Subscription of Shares: Rejection of Excess Applications
Here you can find the meaning of Over Subscription of Shares: Rejection of Excess Applications defined & explained in the simplest way possible.
Besides explaining types of Over Subscription of Shares: Rejection of Excess Applications theory, EduRev gives you an ample number of questions to practice Over Subscription of Shares: Rejection of Excess Applications tests,
examples and also practice Commerce tests.
|
47 videos|117 docs|56 tests
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Extra Questions
,video lectures
,past year papers
,MCQs
,Free
,shortcuts and tricks
,Over Subscription of Shares: Rejection of Excess Applications Video Lecture | Accountancy Class 12 - Commerce
,study material
,Objective type Questions
,Semester Notes
,Over Subscription of Shares: Rejection of Excess Applications Video Lecture | Accountancy Class 12 - Commerce
,practice quizzes
,ppt
,Viva Questions
,Exam
,mock tests for examination
,Sample Paper
,Over Subscription of Shares: Rejection of Excess Applications Video Lecture | Accountancy Class 12 - Commerce
,Summary
,Important questions
,Previous Year Questions with Solutions
;
Study Over Subscription of Shares: Rejection of Excess Applications on the App
Students of Commerce can study Over Subscription of Shares: Rejection of Excess Applications alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Over Subscription of Shares: Rejection of Excess Applications,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Over Subscription of Shares: Rejection of Excess Applications is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup