Mr Sahil and Mr Rajesh are promoting a new company. They are not able to decide on, how to raise funds.
Sahil is interested in a new issue through prospectus, while Rajesh wants a rights issue. As a financial manager, suggest Sahil and Rajesh for the appropriate decision.

Explanation

The issue of shares through prospectus is appropriate, as suggested by Sahil, as a new company cannot issue rights shares because this can only be done by existing companies.