Question

A situation where number of shares offered to the public for subscription are less than the number of shares for which applications have been received is called ______.

Options

• Under subscription

• Fully subscribed

• Over subscription

• Both Fully subscribed and Over subscription

Answer 1

A situation where number of shares offered to the public for subscription are less than the number of shares for which applications have been received is called over subscription.

Explanation:

When shares offered > share application = Under subscription

Shares offered < share application = Over subscription

Shares offered = share application = Fully subscribed