What is the consequence of the delinquent sale of the shares when the highest bid is B for 600 shares with other bids as listed?

What is the consequence of the delinquent sale of the shares when the highest bid is B for 600 shares with other bids as listed?

• A. D shall own 400 shares and X shall retain 600 shares.
• B. A shall own 800 shares and X shall retain 200 shares.
• C. B shall own 600 shares and the corporation shall own 400 shares.
• D. B shall own 600 shares and X shall retain 400 shares.

Answer: (D)

In a delinquent sale, shares go to bidders in order of price, up to the total number of shares being offered. The highest bidder takes as many shares as their bid allows, and any remaining shares stay with the current owner if there are no leftover bids. Here, the highest bid is for 600 shares. That exactly matches the portion being allocated. So the bidder with the top bid receives all 600 shares they sought. The remaining 400 shares are not transferred to another bidder; they stay with the current owner, X. This is why the outcome is that B holds 600 shares and X retains 400 shares.

In a delinquent sale, shares go to bidders in order of price, up to the total number of shares being offered. The highest bidder takes as many shares as their bid allows, and any remaining shares stay with the current owner if there are no leftover bids.

Here, the highest bid is for 600 shares. That exactly matches the portion being allocated. So the bidder with the top bid receives all 600 shares they sought. The remaining 400 shares are not transferred to another bidder; they stay with the current owner, X. This is why the outcome is that B holds 600 shares and X retains 400 shares.