Oversubscription of Shares

Front

Amazon issued 45,000 shares for cash. Applications were received for 1,00,000 shares. What type of subscription is it?

Back

Oversubscribed

Front

What is the term for a situation where the demand for shares exceeds the number of shares available for sale?

Back

Oversubscription

Front

When a company offers shares to the public for the first time, what is this process called?

Back

Initial Public Offering (IPO)

Front

Oversubscription entry is recorded at the time of………

1. Application 

2. Allotment 

3. 1st call 

4. Final call

Back

Application

Front

What happens when a company does not receive enough applications for its shares?

1. Under subscription

2. Oversubscription

3. Full subscription

4. None of the above

Back

Under subscription

Front

What is the term for the price at which shares are offered to the public during an IPO?

Back

Issue Price

Front

When excess money on application is refunded, the following A/c is credited 

1. Share allotment A/c

2. Bank A/c

3. Share capital A/c

4. Share Application A/c

Back

Bank A/c

Front

A Company offered 50,000 shares of Rs. 10 each at par payable as to Rs.3 on applications, Rs.5 on allotment and the balance on final call. Applications were received for 60,000 shares and the allotment was made pro-rata. The excess application money was to be adjusted on allotment and call. How much amount will be transferred from Share Application A/c to Share Allotment A/c?

(A) ₹1,80,000

(B) ₹30,000

(C) ₹1,50,000

(D) ₹50,000

Back

B) 30,000

(10,000 excess application x 3/- app money)

Front

In the case of oversubscription, what happens to the excess application money?

1. Refunded

2. Adjusted against allotment

3. Transferred to reserves

4. None of the above

Back

Adjusted against allotment or refunded

Front

Entry for Excess application money adjusted with allotment money

Back

Share application A/c....Dr

To Share allotment A/c