Define prospectus. What are the main contents of a prospectus
Answers
– a small book which gives information about a school or college in order to advertise it.
– Details of the company, such as name, registered office address, and objects.
– Details of signatories to the Memorandum and their shareholding particulars.
– Details of the directors.
– Details of shares offered and the class of the issue as well as voting rights.
– Minimum subscription amount.
A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds.
The prospectus can help investors make more informed investment decisions because it contains a host of relevant information about the investment or security.
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•Details of the company, such as name, registered office address, and objects
•Details of signatories to the Memorandum and their shareholding particulars
•Details of the directors
•Details of shares offered and the class of the issue as well as voting rights
•Minimum subscription amount
•The amount payable on application, on allotment, and on further calls
•Underwriters of the issue
•Auditors of the company
•Audited reports regarded profit and losses of the company