Arrange the important steps in the correct sequence in the procedure of share issue:(A) Receipt of Applications(B) Allotment of Shares(C) Listing of Shares on the Stock Exchange(D) Issue of ProspectusChoose the correct answer from the options given below:
- A(A), (B), (C), (D)
- B(A), (B), (D), (C)
- C(D), (A), (B), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The chronological sequence followed by a company looking to raise capital via public share issue is:Issue of Prospectus (D) to invite the general public to subscribe.Receipt of Applications (A) alongside the application money from interested investors.Allotment of Shares (B) to the applicants once processing is complete.Listing of Shares on the Stock Exchange (C) to facilitate trading operations.Hence, the correct operational sequence is (D), (A), (B), (C).