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A prospectus is issued by
  • a)
    A private company
  • b)
    A public company seeking investment from public
  • c)
    A public enterprise
  • d)
    A public company
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A prospectus is issued bya)A private companyb)A public company seeking...
Prospectus:
- A prospectus is a legal document that provides information about a company to potential investors.
- It contains important details about the company's business model, financials, management team, and future plans.
Issued by:
A prospectus is typically issued by a public company seeking investment from the public. This means that the correct answer is option B: a public company seeking investment from the public.
Explanation:
- A prospectus is an essential document for companies that want to raise capital through public offerings.
- It is a regulatory requirement for companies to provide potential investors with accurate and comprehensive information about their business before they invest.
- By issuing a prospectus, companies can attract potential investors by showcasing their business model, financial performance, and growth prospects.
- The prospectus helps investors make informed decisions about whether or not to invest in the company.
- It also protects investors by ensuring that they have access to all the necessary information to evaluate the risks and potential rewards of investing in the company.
Conclusion:
In conclusion, a prospectus is issued by a public company seeking investment from the public. It is a crucial document that provides potential investors with comprehensive information about the company and helps them make informed investment decisions.
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A prospectus is issued bya)A private companyb)A public company seeking investment from publicc)A public enterprised)A public companyCorrect answer is option 'B'. Can you explain this answer?
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