Question

what is a prospectus of a company?discuss it nature and importance.

Answer 1

A public company issues prospectus when it wants to raise fresh capital by offering it’s shares or other securities for sale to public.
It is a legal document any misinformation in prospectus leads to legal and civil liability.
Importance of prospectus
It is a window of information showing the financial position of the company stating summary of balance sheet, profit and loss figures.
Prospectus contains vital information on number of shares being offered, amount and type of securities etc.

Answer 2

The prospectus of a company is a document that gives total information regarding the company. The prospectus gives information regarding the aims and objectives of a company. It includes all the information about the services they provide.  

Explanation:

• The prospectus gives an insight regarding the working of a company and the services that they provide to their clients.  

• It includes total information regarding the financial position of the company along with stating a summary of the balance sheet, profit and loss figures of the company.  

• The company prospectus contains details of the working of the company and its requirements.

Learn more about prospectus of a company

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