Explanation

The issue of a prospectus is an invitation to the public to subscribe for shares in a company. A prospectus is a legal document that provides detailed information about the company and the shares being offered.

When a public limited company wants to raise capital from the public, it must issue a prospectus. This document contains information about the company’s history, business activities, financial position, directors, and the terms of the share offer.

The prospectus helps potential investors make informed decisions about whether to invest. It must be registered with the Corporate Affairs Commission (CAC) in Nigeria and meet strict legal requirements to protect investors.

Liquidating a company means winding it up and selling its assets. Redeeming shares means buying them back. Registering a company involves different documents like the Memorandum and Articles of Association. The prospectus is specifically for inviting public investment.