Offer by Prospectus

Offer By Prospectus – Offer by prospectus is a document released by a company to potential investors and public offering shares and debentures and it contains basic factual information about the company and all the risk factors involved, if any.

This document contains valuable information about company’s business along with its financial statements and details about the senior management and board of directors. It also includes details on litigation procedures taking place, if any and information about the properties owned by the company.

This prospectus is generally released by brokerages for potential investors.

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As this document contains vital information on a particular organization and all its units, it becomes a critical piece of information for the potential investors and hence becomes mandate that all information enclosed in it is true and correct. In fact, it is an offence by law if there is any  wrong information or false statements that can mislead the investor or even if the company holds any critical piece of fact. It is also called an offer document and helps the prospective investor make sound investment decisions.

Edited and Updated 08th March 2014

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