Question

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

Answer 1

Answer: (B)

A public company seeking investment from public

Companies that are required to issue a prospectus-

• A public listed company who intends to offer shares or debentures can issue prospectus.
  

A private company is prohibited from inviting the public to subscribe to their shares and thus cannot issue a prospectus. However, a private company which has converted itself into a public company may issue a prospectus to offer shares to the public.