Question

When the whole issue of shares have been underwritten by one person, then his liability will be equal to

number of shares underwritten
number of shares underwritten minus the number of shares applied for by the public
number of shares underwritten minus rejected applications
nill liability​

Answer 1

Explanation:

Among the various options given in question statement, the correct answer is the second option that is his liability will be equal to the number of shares underwritten minus the number of shares applied for by the public. When their is only one person underwriting the whole shares, then he will get the full credit and responsibility for that and also he will get his full commission

Answer 2

When the whole issue of shares have been underwritten by one person, then his liability will be equal to number of shares underwritten deducting those applied for by public.

• If one underwriter subscribes to an entire issue, then their possible liability will be proportional to the considerable number of direct shares or debentures subscribed minus the shares or debentures applied for.
• If one individual underwrites the whole matter, then that individual will receive the particular credit.  
• As such, their possible liability will be proportional to the considerable number of shares underwritten, deducting the applied shares, and there will be no liability if the considerable shares are completely or over-subscribed.