ZIMSEC O Level Commerce Notes: Prospectus(privatised)
- Is prepared by founders of the company or an issuing house after the registration of a public limited company.
- Is sent for approval to the registrar of companies before members of the public are invited to subscribe for shares.
- Issued to members of the public by public limited companies only.
- Contains the following:
- an application form for members of the public who wish to buy shares.
- A closing date for the application.
- A narration of the history and background of the company up to present time.
- A summary of the future plans of the company.
- The current financial position of the company.
- The profit record of the company.
- The number of shares to be sold to the public.
- The price for each share.
- A statement to the effect that a request has been made for permission to quote shares on the stock exchange.
- acts as an invitation (advertisement) to members of the public to buy shares.
- Useful to an investor who wants to assess his risk in making an application to buy shares.
To access more topics go to the Commerce Notes page.