Arrange the following steps related to the issue of shares in proper sequence.

(A) Allotment of Shares

(B) Receipt of Applications

(C) Issue of Prospectus

(D) Share calls

Choose the correct answer from the options given below:

The proper sequence of steps in the issue of shares follows the logical flow of how a company raises capital from the public:

Issue of Prospectus (C) comes first as the company must invite the public to subscribe to its shares by issuing a prospectus - a detailed document containing information about the company, its financial position, and terms of the issue.

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Receipt of Applications (B) follows next as investors respond to the prospectus by submitting application forms along with the application money to apply for shares.

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Allotment of Shares (A) happens after the company receives applications. The Board of Directors allots shares to applicants, and allotment letters are issued to successful applicants. At this stage, the applicants become shareholders of the company.

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Share Calls (D) come last, where the company makes calls (First Call, Second Call, Final Call) to collect the remaining amount from shareholders if the shares were issued on a part-payment basis. This happens only after allotment is complete.

The correct sequence is (C), (B), (A), (D).

Correct Answer: Option 4