Arrange the following stages of share capital transactions in their correct chronological operational sequence:(A) Share Allotment(B) Share Application(C) Share forfeiture(D) Share CallChoose the correct answer from the options given below:
- A(B), (A), (C), (D)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The chronological lifecycle of a corporate share issue takes place in the following sequential stages:Public offers money initially during the Share Application (B) phase.Shares are formally assigned to applicants during Share Allotment (A).Subsequent collections are demanded during the Share Call (D) phase.If a subscriber defaults on paying allotments or calls, the company may cancel their shares during Share forfeiture (C).Thus, the proper sequence is (B), (A), (D), (C).