Question

Difference between over subscription and pro rata allotment

Answer 1

hey mate here us your answer .

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Oversubscription and pro-rata allotment. Over subscription is the application money received for more than the number of shares offered to the public by a company. ... The company may reject some applicants in full, i.e., no shares are allotted to some applicants and application money is refunded.

Answer 2

• Oversubscription and pro- rata allotment . Over subscription is the operation capitalist entered for further than the number of shares offered to the public by a company .
• The company may reject some applicants for full , i . E , no shares are distributed amongsome applicants and operation capitalist is refunded .
• Pro-rata an allotment refers to the allotment of shares in proportion of the shares applied for .
• When a company makes pro- rata allotment , it adjusts the spare capitalist entered at the time of operation firstly , towards the allotment and also towards calls .
• Oversubscribed is a term used when the demand for a new issue of stock is lower than the number of shares available .
• When a new issue is oversubscribed , backers or other financial realities offering the security can adjust the price outflow or offer farther securities to reflect the advanced- than- anticipated demand .

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