Arrange the following in order with respect to the issue of shares

(A) Application received

(B) Issue of prospectus

(C) Forfeiture of shares

(D) Allotment of Shares

(E) Reissue of forfeited shares

Choose the correct answer from the options given below:

The chronological sequence of events in the issue of shares follows this order:

Issue of Prospectus (B) → This is the first step where the company invites the public to subscribe for shares by publishing a prospectus containing details about the company and share issue.

Application Received (A) → After reading the prospectus, interested investors submit applications along with application money to purchase shares.

Allotment of Shares (D) → The company then allots shares to the applicants. Once allotted, shareholders are required to pay subsequent calls (installments) as and when demanded.

Forfeiture of Shares (C) → If any shareholder fails to pay the call money (like allotment money, first call, final call, etc.) within the specified time, the company may forfeit their shares.

Reissue of Forfeited Shares (E) → Finally, the forfeited shares can be reissued to new or existing shareholders, often at a discount.

The correct sequence is: (B), (A), (D), (C), (E)

Correct Answer: Option 3