What will be the number of shares to be issued to a subscriber who applied for 50000 units?

A. 20,000
B. 18,000
C. 15,000
D. 12,000

Correct Answer:

Option A – 20,000

Explanation

Allotment = 500,000 = 0.4 or 40%

∴ Each subscriber would get 40% shares of what they applied for.

∴ 50,000 x 0.4 = 20,000 units