Question

Definition of pro-rata allotment

Answer 1

Answer:

When company issue shares to Share applications and share applications is more than the shares that company wants to issue then company allot shares on pro rata basis.

e.g. If total no. of shares to be issued = 10000

Total Applications = 100000

Then, A who has applied for 10 shares will only get 1 share in allotment. i.e. 10000/100000×10=1