Informative report of public deposit invited by company
Answers
The public deposits are kind of deposits which are actually taken from directors or members of a particular company or from general individuals at a particular interest rate for particular time duration.
This kind of fund raising method gets more fame among everyone.
The main benefit of this method is that this simple financing form does not include any complicated formalities.
Companies invite unsecured deposits from the public, which are technically termed as public deposits.
With their invitation, their main aim is to arrange finance for their capital requirements.
Normally, companies inviting public deposits publish advertisements in newspapers.
A person who wants to deposit the money can fill up a form and receive a deposit receipt.
In return, the individual receives a specific rate of interest on his investment.
However, it may vary from one company to the other.