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Distinguish between ‘Over-Subscription’ and ‘Under-Subscription’.

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Over- Subscription of ShareUnder-Subscription of Shares
In this case, number of shares applied for by public is more than the number of shares offered by the company.In this case, number of shares applied for by public is less than the number of shares offered by the company.







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Previous PostCan ‘Securities Premium Reserve’ be used as working capital? Give reason in support of your answer.
Next PostState the steps other than rejecting applications that a company can take in case of over-subscription.

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