A prospectus is a formal document filed with the SEC that provides details about an investment offering, including stocks, bonds, and mutual funds. It contains relevant information to help investors make informed decisions. A statement in lieu of prospectus is similar but filed with the Registrar of Companies when a company has not issued a full prospectus, and includes brief details like company name, capital account, director information, and property vendor names. Both documents invite public subscription to shares or debentures.

1. Prospectus and
Statement in
Lieu of
Prospectus
HEMANTH KUMAR.B
2ND BBA B

2. A prospectus is a formal document that is required by
and filed with the Securities and Exchange Commission
(SEC) that provides details about an investment offering
to the public. A prospectus is filed for offerings of stocks,
bonds, and mutual funds.
The prospectus can help investors make more informed
investment decisions because it contains a host of
relevant information about the investment or security.

3.  For any document to considered as a
prospectus, it should satisfy two
conditions.
 The document should invite the
subscription to public share or
debentures, or it should invite deposits.
 Such an invitation should be made to the
public.
 The invitation should be made by the
company or on the behalf company.
 The invitation should relate to shares,
debentures or such other instruments.

4.  The Statement in Lieu of Prospectus is a
document filed with the Registrar of the
Companies ( ROC ) when the company has not
issued prospectus to the public for inviting them
to subscribe for shares. The statement must
contain the signatures of all the directors or
their agents authorized in writing. It is similar to
a prospectus but contains brief information. The
Statement in Lieu of Prospectus needs to be filed
with the registrar if the company does not issues
prospectus or the company issued prospectus but
because minimum subscription has not been
received the company has not proceeded for the
allotment of shares.

5.  Name of the company
 Account of capital
 Explanation of the business
 Names, addresses, and occupations of directors
 Probable preliminary expenses
 Names of vendors and information of the property
 Substance contracts
 Director’s interests
 Least subscription