Prospectus is a document which is _________

Basis of the contract
Contract
Evidence of contract
Providing details about product

The correct answer is: D. Providing details about product

A prospectus is a document that provides information about a security or investment opportunity. It is used to help potential investors make informed decisions about whether or not to invest.

A prospectus typically includes information about the company or organization issuing the security, the security itself, the risks involved in investing, and the potential returns. It may also include financial statements, management’s discussion and analysis, and other information that is relevant to investors.

Prospectuses are required by law for certain types of securities offerings, such as initial public offerings (IPOs). They are also commonly used for other types of securities offerings, such as secondary offerings and private placements.

Prospectuses are an important tool for investors. They provide information that investors need to make informed decisions about whether or not to invest in a particular security or investment opportunity.

Here is a brief explanation of each option:

  • A. Basis of the contract

A contract is an agreement between two or more parties that creates an obligation to do or not do something. The basis of a contract is the agreement itself. The prospectus is not the basis of a contract.

  • B. Contract

A contract is an agreement between two or more parties that creates an obligation to do or not do something. The prospectus is not a contract.

  • C. Evidence of contract

Evidence of a contract is something that shows that a contract exists. The prospectus is not evidence of a contract.

  • D. Providing details about product

A prospectus is a document that provides information about a security or investment opportunity. It is used to help potential investors make informed decisions about whether or not to invest.

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