Arrange the following steps in the procedure of share issues in the correct sequence:(A) Receipt of Applications(B) Allotment of Shares(C) Issue of Prospectus(D) Listing on the stock exchangeChoose the correct answer from the options given below:
- A(A), (B), (C), (D)
- B(C), (A), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The process of public issue of shares by a company involves the following logical sequence of steps:First (C): Issue of Prospectus to invite the public to subscribe to the shares.Second (A): Receipt of Applications along with application money from investors.Third (B): Allotment of Shares to the applicants where shares are officially assigned.Fourth (D): Listing on the stock exchange to enable secondary market trading of those shares.Thus, the correct sequence is (C), (A), (B), (D).