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WAEC Commerce 1994 Question 72

Question 72

Stock Exchange

When applications are received for more shares than are offered for sale, the issue is said to be

  1. A.under subscribed
  2. B.selling above par
  3. C.selling below par
  4. D.offered at a premium
  5. E.over subscribed
Show the answer and explanation

Answer: E (over subscribed)

Explanation

When demand exceeds the shares offered, the issue is oversubscribed.