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Question

_______makes a direct appeal to investors to raise capital, through an advertisement in newspapers and magazines.

A
Investor
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B
Prospectus
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C
Underwriter
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D
Auditor
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Solution

The correct option is B Prospectus
Prospectus makes a direct appeal to investors to raise capital, through an advertisement in newspapers and magazines. Prospectus is regarded as a formal document. It is required to be filed with the Securities and Exchange Commission. It helps to provide details about an investment offering for sale to the public.

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