The correct answer is: D. Tenth day
A company shall not proceed to allot shares until the beginning of the tenth day from the date of the issue of the prospectus. This is to allow time for potential investors to review the prospectus and make an informed decision about whether to invest in the company.
The prospectus is a document that provides information about the company, its business, and its financial condition. It is a legal document that must be filed with the Securities and Exchange Commission (SEC) before the company can offer its shares to the public.
The prospectus must include information about the company’s business plan, its financial history, its management team, and its risks. It must also include a description of the shares that are being offered and the terms of the offering.
Potential investors can use the prospectus to learn about
the company and decide whether to invest in it. They can also use the prospectus to compare the company to other companies in the same industry.The prospectus is an important document that should be carefully reviewed by potential investors. It is a valuable tool that can help investors make informed decisions about whether to invest in a company.
Option A: Third day
This is incorrect because the company cannot proceed to allot shares until the beginning of the tenth day from the date of the issue of the prospectus.
Option B: Fifth day
This is incorrect because the company cannot proceed to allot shares until the beginning of the tenth day from the date of the issue of the prospectus.
Option C: Seventh day
This is incorrect because the company cannot proceed to allot shares until the beginning of the tenth day from the date of the issue of the prospectus.