Multiple choice

When a prospectus is issued by a public company for one or more securities, it is called

  1. Statement in lieu of prospectus

  2. Prospectus

  3. Shelf Prospectus

  4. None of these

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

 A shelf prospectus is issued when a public company intends to raise money for one or more securities. It is a difficult and expensive task to issue a prospectus every time it seeks to raise money from the public. So a shelf prospectus is issued which allows for more than issue of securities within a year from the date of its first offer.

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