Prospectus:
A prospectus is an invitation to the general public to subscribe its shares or debenture .Actually it is a printed pamphlet, circulated and advertised in the newspapers.
However a prospectus include the following contents:-
01.Name of the company with date of incoirporation .
02.Date of prospectus.
03.Consent of securities & exchange commisssion.
04.Capital outlay.
05.Name of the directors with address and others particulars .
06.The qualifying share of the directors.
07.Remuneration of directors.
08.The miunimum subscribtion on capital
09.The amount to be paid during application & allotement.
10.The underwriting commission or brokerage .
11.Name & address of vendor if any .
12.Name of the auditors with address.
13.The number of the classes of share.
14.Dividend policy & expected dividend to be declared.
15.The risk factor involvement
16.Voting right of each classes of share holders .
17.Contents of the memorandum
18.Time of the opening subscription list.
19.Preliminary expense incurred.
20.Purticulars regarding purchase of property.
21.Details premimum & underwriting commission.
22.Restriction upon the power of directors.