Find the correct sequential operational procedure for the public issue of shares by a joint-stock company:(A) Receipt of Applications(B) Issue of prospectus(C) Allotment of Shares(D) Making call money due(E) Receiving Call moneyChoose the correct answer from the options given below:
- A(A), (B), (C), (D), (E)
- B(B), (A), (C), (D), (E)
- C(B), (C), (D), (A), (E)
- D(B), (D), (A), (C), (E)
Solution & Step-by-step Explanation
The chronological steps in the procedural routine for issuing corporate public shares are:Issue of prospectus (B): Inviting public interest.Receipt of Applications (A): Public applying along with application fees.Allotment of Shares (C): Allocating units to subscribers.Making call money due (D): Demanding installments.Receiving Call money (E): Collection of installment amounts.Hence, the correct operational order is (B), (A), (C), (D), (E).