Arrange the following operational steps in the procedural sequence of public share issuance by a company:(A) Allotment of Shares(B) Calls in Arrears(C) Issue of Prospectus(D) Receipt of ApplicationsChoose the correct answer from the options given below:
- A(C), (D), (A), (B)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The process of issuing shares to the public involves a sequence of standard steps:Issue of Prospectus (C): Inviting public interest via an informational brief.Receipt of Applications (D): Prospective buyers submit forms along with application fees.Allotment of Shares (A): Direct assignment of shares to successful subscribers.Calls in Arrears (B): Occurs subsequently when an allotted shareholder fails to clear due call payments.Hence, the correct operational series is (C), (D), (A), (B).