Arrange the following in the correct sequence related to the issue of shares:(A) Letters of allotment and letters of regret are sent(B) Prospective investors make an application along with the application money(C) The company issues the prospectus to the public(D) Subsequent installments are calledChoose the correct answer from the options given below:
- A(C), (D), (A), (B)
- B(C), (B), (A), (D)
- C(C), (A), (D), (B)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The chronological sequence for public issue of shares is:First, the company issues a prospectus to invite the public (C)Investors apply for shares by submitting application forms with application money (B)The company then processes allotments, sending letters of allotment to successful applicants and letters of regret to others (A)Finally, subsequent installments (allotment money, call money) are called up (D)Thus, the sequence is (C), (B), (A), (D).