Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
Which of the following statement is issued before the issue of shares ?
Options:
Prospectus
Memorandum of Association
Articles of Association
All of the above
Correct Answer:
Prospectus
Explanation:
A company's prospectus is a formal legal document designed to provide information and full details about an investment offering for sale to the public. Companies are required to file the documents with the Securities and Exchange Commission (SEC). A prospectus is a legal document that provides detailed information about a company's securities (such as stocks or bonds) being offered for sale to the public. It serves as an essential source of information for potential investors to make informed decisions about whether to invest in the company.