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easyMCQCUET UG 2024 Accountancy Question Paper (17-May-2024) (Shift 3)2026Accountancy
1 mark

Oversubscription is a situation where the:

  1. A
    Number of shares applied for is equal to the number of shares issued.
  2. B
    Number of shares applied for is more than the number of shares issued.
  3. C
    Number of shares applied for is less than the number of shares issued.
  4. D
    Face value of the share is less than the issue price of the share.

Solution & Step-by-step Explanation

Oversubscription occurs when public demand exceeds public supply—specifically, when the number of shares applied for by the public is greater than the total number of shares offered/issued by the company.

Practice this question

Try it yourself before checking the explanation above.

Oversubscription is a situation where the:
A
Number of shares applied for is equal to the number of shares issued.
B
Number of shares applied for is more than the number of shares issued.
C
Number of shares applied for is less than the number of shares issued.
D
Face value of the share is less than the issue price of the share.

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Company AccountsShare CapitalOversubscription

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