Question

A Company invited applications for 1,00,000 shares and it received applications for 1,50,000 shares. Applications for 30,000 shares were rejected and the remaining were allotted shares on prorata basis. How many shares an applicant for 3,000 shares will be allotted?

Options

• 2,500 Shares

• 3,600 Shares

• 4,500 Shares

• 2,000 Shares

Answer 1

2,500 Shares

Explanation:

Applications and Allotment
Shares invited = 1,00,000
Applications received = 1,50,000
Applications rejected = 30,000
Applications considered = 1,50,000 – 30,000 = 1,20,000

Pro-rata Ratio
1,00,000 : 1,20,000 
= 5 : 6
For every 6 shares applied, only 5 shares are allotted.

Applicant for 3,000 shares
Shares allotted = `3,000 × (5/6)` 
= 2,500 shares