Arrange the following steps in the procedure of share issues in the correct sequence:

(A) Receipt of Applications

(B) Allotment of Shares

(C) Issue of Prospectus

(D) Listing on the stock exchange

Choose the correct answer from the options given below:

The correct sequence of share issue procedure follows a logical flow from inviting investors to enabling trading of shares.

Issue of Prospectus (C) comes first as the company must invite the public to subscribe to its shares by issuing a prospectus. This document contains all material information about the company, terms of issue, and other relevant details.

Receipt of Applications (A) follows next, as investors respond to the prospectus by submitting their applications along with application money to purchase shares.

Allotment of Shares (B) is the third step where the company allocates shares to successful applicants based on the applications received and availability of shares.

Listing on Stock Exchange (D) is the final step, occurring after shares are allotted. The company gets its shares listed on a recognized stock exchange to enable trading in the secondary market.

The sequence represents the complete journey: Company invites → Public applies → Company allots → Shares become tradable

Therefore, (C), (A), (B), (D) is the correct order, making Option 2 the right answer.