Question

Y Ltd. invited applications for 10,000 shares of ₹10 each. Applications were received for 9,000 shares. Identify the kind of subscription.

Options

• Under Subscription

• Over Subscription

• Full Subscription

• None of the above

Answer 1

Under Subscription

Explanation:

Only 9,000 shares were applied for out of the total of 10,000. This is an example of a share under-subscription.