Arrange the following events in the correct chronological order with respect to the issue and lifecycle of shares:(A) Application received(B) Issue of prospectus(C) Forfeiture of shares(D) Allotment of Shares(E) Reissue of forfeited sharesChoose the correct answer from the options given below:
- A(A), (B), (C), (D), (E)
- B(A), (C), (B), (E), (D)
- C(B), (A), (D), (C), (E)
- D(C), (E), (B), (D), (A)
Solution & Step-by-step Explanation
The logical sequence for an equity share lifecycle is:First, the company releases information to public via Issue of prospectus (B).Investors submit money and Application is received (A).The board reviews and authorizes Allotment of Shares (D).If a subscriber defaults on subsequent calls, it leads to Forfeiture of shares (C).Finally, the company proceeds with the Reissue of forfeited shares (E).Thus, the correct sequence is (B), (A), (D), (C), (E).