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Advance accounting query
underwriting of shares:-
How do we get to know the calculation of unmarked applications because i see similar type of questions solved in different ways....please help
Replies (1)
While issuing the shares, entities get approval from different underwriters for the purpose of Underwriting of Proposed Issuing shares in case of unsubscripttion or less subscripttion.
For this purpose, they charge commission on such shares.
Applications are applied in
Marked
Unmarked
or Firm Liability
Unmarked application is evidenced by the question.
You may have the query of FIRM LIABILITY
ie, whether the firm liability is under the Marked or Unmarked application.
Please make sure for that.
Unmarked application is simple concept.
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