A document through which invitation is extended to the public to subscribe to shares is?...
COMMERCE
WAEC 2018
A document through which invitation is extended to the public to subscribe to shares is?
- A. article of association
- B. memorandum of association
- C. prospectus
- D. qoutation
Correct Answer: C. prospectus
Explanation
A prospectus is a document published by every firm offering its securities to public for purchase. its an invitation for the purchase of a company's finanacial security. it is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company's business, financial statements, biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information.
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