What do you understand by Pro-rata allotment of shares? (Answer in one sentence)
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IT REFERS TO METHOD OF ALLOTMENT OF SHARES IN WHICH EACH APPLICANT IS ALLOTTED SHARES IN PROPORTION TO THE NUMBER OF SHARES APPLIED FOR BY HIM..
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As per the question
Pro-rata allotment of shares :
In case of pro rata allotment of shares there may be difficulties in finding out the amount not received on a particular call , if such shares have been forfeited
some shareholder were allotted shares under pro - rata system i.e. they applied for more shares and they were allotted less number of shares. Therefore their excess application money were transferred towards some due on allotment
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