Question

Difference between oversubscription and under subscription of shares

Answer 1

Answer:

Over Subscription:

1. Applications received are more than the shares issued

2. In this case the application money is refunded on the rejected applications

3. Pro-rata allotment is made in this case

Answer 2

Answer:

Shares application received : If the shares applications received are more than the shares offered it is over-subscription and if it is less than the shares offered for subscription then it is under- subscription.