What is a prospectus of a company? Discuss its nature and importance.

Explanation

The prospectus is a document issued by the company that offers the investment. This document provides you with basic information about the investment, such as background information about the company issuing it.

The features and characteristics of the prospectus are:


`(i)` It is a document issued as a prospectus;


`(ii)` It is an invitation to the member of the public;


`(iii)` The public is invited to subscribe to the shares or debentures of the company;

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