Applications are received for 1,50,000 shares against 1,00,000 shares offered. Pro-rata allotment is made. If X applied for 1,500 shares, how many shares are allotted to him?
Answer and explanation
Correct answer: C. 1,000 shares
.
- Step 1: Determine the pro-rata allotment ratio: .
- Step 2: Multiply the shares applied by the allotment ratio:
- Step 3: X is allotted exactly 1,000 shares, and surplus application money is adjusted towards allotment.
Answer
1,000 shares.
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