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प्रश्न
Explain the following term/concept.
Red Herring Prospectus
उत्तर
(1) A red herring prospectus is a first or preliminary prospectus is a document submitted by the issuer (company) as a part of a public offering of securities. Potential investors may not place buy orders for the securities based solely on the information contained within the preliminary prospectus.
(2) Red herring prospectus is an incomplete prospectus as it does not include complete information on the quality of securities offered and issued the price of securities being offered. It is usually issued by the newly established company at the time of Initial Public Offer (IPO) of the company. A company must file a Red herring prospectus with Registrar of Companies (ROC) at least 3 days prior to the opening of the subscription list and the offer.
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संबंधित प्रश्न
Answer in one sentence.
When is Abridged Prospectus issued?
Explain the following term/concept.
Prospectus
Explain the following term/concept.
Misstatement in Prospectus
Explain the following term/concept.
Abridged Prospectus
Explain the following term/concept.
Shelf Prospectus
Answer in brief:
State the statutory requirements in relation to Prospectus.
Justify the following statement.
The prospectus is an important document issued by a public company.
Justify the following statement.
Company and officers responsible for issuing Prospectus are liable for misstatements in Prospectus.
Answer the following question:
fine Prospectus. Explain its contents.
What is meant by Prospectus?
