Who is the target audience of a prospectus?

General public

The correct answer is option 4- General public.

General public is the target audience of a prospectus.

The company first issues the prospectus to the public. Prospectus is an invitation to the public that a new company has come into existence and it needs funds for doing business. It contains complete information about the company and the manner in which the money is to be collected from the prospective investors. When prospectus is issued to the public, prospective investors intending to subscribe the share capital of the company would make an application along with the application money  and deposit the same with a scheduled bank as specified in the prospectus. The company has to get minimum subscription within 120 days from the date of the issue of the prospectus. If the company fails to receive the same within the said period, the company cannot proceed for the allotment of shares and application money should be returned within 130 days of the date of issue of prospectus.