The correct option is B Invitation from company to subscribe for sharesA #160;share #160;issuance requires issuing a #160;prospectus, receiving applicati ...

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Standard XII

Business Studies

Functions of Financial Market

Prospectus is...

Question

Prospectus is_____.

Invitation from company to subscribe for shares

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Document submitted to ROC after allotment of shares

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Document which shows the number of shares that have been allotted

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Document which shows the paid up capital of the company

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Solution

The correct option is B Invitation from company to subscribe for shares
A share issuance requires issuing a prospectus, receiving application of shares, A prospectus is a document used by a public company as an open invitation to but when applications are less than expected, there is an under-subscription.

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