Multiple choice

The prospectus is issued by:

  1. A private company

  2. A public company seeking investment from public

  3. A public enterprises

  4. A public company

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

A prospectus is a formal legal document issued by a public company to invite the public to subscribe to its shares or debentures. Private companies are prohibited from inviting the public to subscribe.