Question

the prospectus must be issued to the public within ____ days of its date
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Answer 1

the prospectus must be issued to the public within 30 days of its date

Answer 2

Answer:

The prospectus must be issued to the public within 90 days of its date

Explanation:

The prospectus contains detailed information on the securities. A public company can issue the prospectus to offer its shares and debentures. In contrast, a private company cannot give a prospectus.

     A prospectus should be issued within ninety days from the date of delivery of the prospectus to the Registrar. No prospectus shall be valid if given more than ninety days after a copy is delivered to the Registrar.

A prospectus includes some of the following information:

• A summary of the company’s background and financial information

• The name of the company issuing the stock

• The number of shares

• The type of securities being offered

• Whether an offering is public or private

• Terms of the company’s principals

• Terms of the banks or financial companies performing the underwriting

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