Question

Anish Ltd, issued a prospectus inviting applications for 2,000
shares. Applications were received for 3,000 shares and pro- rata
allotment was made to the applicants of 2,400 shares. If Dhruv has
been allotted 40 shares, how many shares he must have applied
for?

Answer 1

The correct answer is 48.

No. of shares applied= Total shares applied/Total shares allotted × Shares allotted by the Firm to the Shareholder

                                   = 2400/2000 × 40

                                   = 12 × 4 = 48

So, the Total shares applied are 48.