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Issue of prospectus is an invitation to the Public to

Accounts - Principles of Accounts
JAMB 2024

Issue of prospectus is an invitation to the Public to

  • A. register a company
  • B. liquidate a company
  • C. redeem all outstanding shares
  • D. subscribe for share
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Correct Answer: Option D
Explanation

A prospectus is a formal legal document that provides detailed information about a company's financial condition, its plans for the future, and the risks involved in investing.
The primary purpose of issuing a prospectus is to attract potential investors to buy (subscribe for) shares of the company's stock.


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