Question

Select the most appropriate answer from the alternatives given below and rewrite the sentence :

The document inviting offers from public to subscribe its share is called _____________.
a) prospectus
b) share certificate
c) both ‘a’ and ‘b’
d) none of these

Answer 1

The document inviting offers from public to subscribe its share is called prospectus.

Explanation: A prospectus is used to invite applications from the general public to purchase the shares of a company. It contains information about the company such as names and addresses of the registered office and directors of the company, consent from SEBI, authorised and issued capital etc. On the basis of information contained in a prospectus, the public applies for the shares.