Characteristics of Prospectus : Following are the characteristics of prospectus:
(1) Public document: Prospectus is a public document issued by the company. Public can go through the information mentioned in it and take decision whether to invest in company or not.
(2) Public invitation for subscription : Through prospectus a company invites public at large to purchase or to subscribe the shares, debenture or other securities.
(3) Nature: Prospectus is public document giving invitation to the public to purchase securities of a company. This document should be in nature of notice, circular or public advertisement.
(4) Written form: Prospectus issued by the company should be in written form, it means oral invitation is not considered as prospectus.