Question

which company can issue the prospectus fro inviting invitation for investment from public?​

Answer 1

Answer:

Companies that are required to issue a prospectus

A public listed company who intends to offer shares or debentures can issue prospectus. A private company is prohibited from inviting the public to subscribe to their shares and thus cannot issue a prospectus.

Answer 2

A public company  can issue the prospectus for inviting invitation for investment from public.

• A prospectus is a document drawn up by the company that sets out the details of the offer of shares/securities for sale to the public for direct investment.
• The prospectus may be issued by a publicly listed company intending to offer shares or debentures. It is undertaken for instantly raising the required funds from the public.
• A private company is forbidden to allegedly invite the people for their share subscription and can therefore not issue a prospectus.