Arrange following in correct sequence related to issue of shares

(A) Letters of allotment, and letters of regret are sent

(B) Prospective investors would make an application along with the application money

(C) The company issues the prospectus to the public

(D) Sebsequent installment are called

Choose the correct answer from the options given below:

The correct sequence of events in the issue of shares follows a logical business flow:

First: (C) The company issues the prospectus to the public

A prospectus is the formal document inviting the public to subscribe to shares. This must be issued before any applications can be received.

Second: (B) Prospective investors make an application along with application money

After reading the prospectus, interested investors submit their applications requesting shares and pay the application money (first installment) along with it.

Third: (A) Letters of allotment and letters of regret are sent

Once applications are received, the company processes them and decides on allotment. Letters of allotment are sent to successful applicants informing them about shares allotted, while letters of regret are sent to those whose applications are rejected.

Fourth: (D) Subsequent installments are called

After shares are allotted, the company calls for remaining amounts like allotment money, first call, second call, and final call as per the payment schedule.

The sequence represents the natural progression: Invitation → Application → Allotment Decision → Collection of Balance Amount

Therefore, the correct sequence is (C), (B), (A), (D) which is Option 2.