Prospectus means any document described or issued as a prospectus which has the object of inviting deposits from or inviting offers from the public for the subscription or purchase of shares in, or debentures of a company.
It is an invitation to the public for purchase of shares and debentures of the company. It informs the. Public about the company and stimulates people to invest money in the company.
2. It provides an authentic record of the bonus and conditions on which shares and debentures have been issued on the faith of prospectus, a person is induced to purchase shares in the company.
3. It identifies the persons who can be held responsible for miss
statements made in it. .
4. It reflects the business policies and programmers of the company. Is the issue of Precuts Compulsory’! No. issue of prospectus by
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