Answer:
Oversubscription. Three alternatives for allotting shares are: (i) Reject the excess applications received for 5,000 shares. (ii) Pro-rata allotment in the ratio of 10 : 15. (iii) Full allotment to some applicants, pro-rata to some applicants and reject the remaining applications. e.g. applicants of 2,000 shares are allotted in full, applicants for 1,000 shares are rejected and pro-rata allotment is made for the balance shares, i.e. applicants for 12,000 shares are allotted 8,000 shares.
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