Which of the following is NOT a purpose of a prospectus?

Attracting potential employees

The correct answer is option 2- Attracting potential employees.

Attracting potential employees is not a purpose of a prospectus.

While a prospectus gives an overview of the company, its primary focus is on attracting investors by providing financial and investment-related information. Recruitment of employees is typically done through separate channels like job advertisements, career fairs, and the company's human resources department.

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.