Issue of prospectus is an invitation to members of the public to

Assessment: WAEC SSCE - Financial Accounting - 2001 (Objective) Subject: Financial Accounting

Question 1 Report

Issue of prospectus is an invitation to members of the public to
Answer Details
An issue of prospectus is an invitation to members of the public to subscribe for shares of a company. A prospectus is a formal document that provides details about the company, its business operations, financial performance, and the terms and conditions of the share offer. The purpose of issuing a prospectus is to attract potential investors and encourage them to buy shares in the company. When a company issues a prospectus, it is inviting members of the public to invest in the company by buying its shares. The company sets the price of the shares and the number of shares available for purchase, and investors can decide whether or not to invest based on the information provided in the prospectus. Therefore, the correct option in this case is "subscribe for shares," as an issue of prospectus is an invitation to members of the public to invest in a company by buying its shares.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning