Multiple choice

Prospectus is required to be issued in which of the following cases?

  1. When it is a private company

  2. When a public company intends to raise its share capital from the public

  3. When a public company intends to raise its capital from private sources

  4. When shares are offered to existing members by way of rights issue

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 A prospectus is required to be issued when a public company intends to raise or invites subscription to its share capital from public. 

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