Arrange the following steps as per the procedure of issue of shares:(a) Receipt of applications(b) Allotment of shares(c) Reissue of forfeited shares(d) Issue of prospectus(e) Forfeiture of sharesChoose the correct answer from the options given below:
- A(a), (b), (c), (d), (e)
- B(b), (a), (d), (c), (e)
- C(d), (a), (b), (e), (c)
- D(a), (b), (e), (d), (c)
Solution & Step-by-step Explanation
The chronological sequence for issuing and managing shares is: first, the company issues a prospectus (d); then it receives applications from the public (a); next, the shares are allotted (b); if shareholders fail to pay calls, shares are forfeited (e); and finally, these forfeited shares may be reissued (c).