Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement. Which of the following methods is being referred to here?

Private placement Offer through a prospectus Offer for sale All of the above

Offer through a prospectus

Offer through Prospectus: Offer through prospectus is the most popular method of raising funds by public companies in the primary market. This involves inviting subscription from the public through issue of prospectus. A prospectus makes a direct appeal to investors to raise capital, through an advertisement in newspapers and magazines. The issues may be underwritten and also are required to be listed on at least one stock exchange. The contents of the prospectus have to be in accordance with the provisions of the Companies Act and SEBI disclosure and investor protection guidelines.