Commerce WAEC

A document through which invitation is extended to the public to subscribe to shares is?

A. article of association
B. memorandum of association
C. prospectus
D. quotation

Correct Answer: Option C

C. prospectus

Explanation

A prospectus is a document published by every firm offering its securities to public for purchase. its an invitation for the purchase of a company’s financial security.

it is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company’s business, financial statements, biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information.

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