Correct the underlined word/s and rewrite the following sentences.

1. Issued capital is the maximum capital which a company can raise by issuing shares.
Ans: Authorised capital is the maximum capital which a company can raise by issuing shares.

2. Under Fixed price issue method, the price of shares is fixed through bidding process.
Ans: Under book building method the price of shares is fixed through bidding process.

3. FPO refers to offering of shares to the public for the first time.
Ans: IPO refers to offering of shares to the public for the first time.

4. Only fully paid up shares can be forfeited.
Ans: Only partly paid shares can be forfeited.

5. Bonus shares are offered to existing employees of a company.
Ans: Bonus shares are offered to existing equity shareholders of a company.

6. Company enters into an underwriting agreement with the shareholders.
Ans: Company enters into an underwriting agreement with the underwriters.

7. Letter of Allotment is sent to applicants when no shares are allotted to them.
Ans: Letter of Regret is sent to applicants when no shares are allotted to them.

8. Duplicate share certificate must be issued within one month from date of application.
Ans: Duplicate share certificate must be issued within three months from date of application.

9. Call money cannot exceed 5% of nominal value of shares.
Ans: Call money cannot exceed 25% of nominal value of shares.