A prospectus is a legal document for companies going public, detailing share offerings, financial health, business plans, and risks to help investors make informed decisions.
Types of prospectus are Red Herring Prospectus, Shelf Prospectus, Deemed Prospectus, and Abridged Prospectus. These are essential for informing investors about offerings.
The importance of a prospectus lies in transparency, enabling informed decisions, regulatory compliance, investor confidence, highlighting risks & providing operational insights.