Question on: JAMB Accounting - 2024
When shares are over-subscribed, directors may decide to scale down the number of shareholding by allotting shares at ___
A
discount
B
par
C
premium
D
prorata
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Correct Option: D
When a share issue is over-subscribed, there is more demand than available shares. Directors usually allocate shares using the pro-rata method, meaning each applicant receives a proportion of the shares they applied for.
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