Formation of Joint Stock Company: Prospectus and Main Objectives of Issue of a prospectus

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Prospectus

After getting the Certificate of Incorporation or Registration a public limited company. Company invites the public to subscribe to its shares. This is done by issuing a document called Prospectus.

Main Objectives of Issue of a Prospectus Are

  • To inform the public about the company

  • To induce people to invest in the shares or debentures of the company

  • To provide an authentic information about the company and terms and conditions of issue of shares and debentures.

Main objectives of issue of a prospectus

Main Objectives of Issue of a Prospectus

Prospectus Usually Contains the Following Information

  • General information regarding the name, office of the company, stock exchange etc.

  • Capital structure of the company.

  • Terms of payment and application procedure.

  • Company management and details of the project and project report.

  • Other listed companies under the same management.

  • Outstanding litigations and defaults.

  • Management perception of risk factors.

Prospectus usually contains the following information

Prospectus Usually Contains the Following Information

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