Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Claw > Prospectus_Flashcards (1) > Flashcards

Prospectus_Flashcards (1)

1
Q

What is the definition of a prospectus?

A

A document issued as a prospectus including any notice, circular, advertisement, or invitation offering securities to the public.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the purpose of a prospectus?

A
  1. Provides information to the public.
  2. Helps investors decide whether to invest in the company.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When can a prospectus be issued?

A

Any time after incorporation but before the expiry of the prospectus.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a shelf prospectus?

A

A single offering document allowing multiple offerings within a prescribed time and conditions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a supplement to a shelf prospectus?

A

Issued when there are changes in disclosures or information in the shelf prospectus.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who can approve a prospectus?

A
  1. Approved by the Commission.
  2. Cleared by the stock exchange where securities are listed.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are exceptions to the approval requirement for a prospectus?

A
  1. Securities by the State Bank of Pakistan.
  2. Private offerings or placements.
  3. Shares issued as specie dividends.
  4. Securities for members or employees.
  5. Bonus shares.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the validity of an approved prospectus?

A
  1. Valid for 60 days from approval.
  2. Shelf prospectus may have extended validity.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the filing requirements for a prospectus?

A
  1. File a copy with the Registrar on or before publication.
  2. Signed by all directors or proposed directors.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What content must a prospectus include?

A

Must include prescribed information and reports as per Public Offering Regulations, 2017.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the purpose of listing risk factors in a prospectus?

A
  1. Highlights potential risks.
  2. Ensures investors are aware before making decisions.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the publication requirements for a prospectus in newspapers?

A
  1. Publish in full or abridged form.
  2. In one Urdu and one English newspaper.
  3. Between 7-30 days before public subscription.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Where must copies of the prospectus be made available?

A
  1. Registered office of the issuer.
  2. Securities exchanges.
  3. Bankers to the issue.
  4. Share registrar, balloter, and credit rating agency.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the requirements for uploading a prospectus on a website?

A
  1. Upload full text and subscription form on the website.
  2. Available from publication to closing of subscription.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the restrictions on advertisements announcing public offers?

A
  1. Prospectus must be published.
  2. Advertisement must provide an address to obtain the prospectus.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Can the terms of a prospectus be varied after publication?

A

Terms cannot be varied without Commission approval.

17
Q

Who is considered an expert in a prospectus?

A

Includes banker, securities advisor, engineer, valuer, accountant, lawyer, or other professionals.

18
Q

What are the conditions for including an expert’s statement in a prospectus?

A
  1. Expert must be independent.
  2. Must give written consent to include their statement.
19
Q

What are the offences related to misstatements in a prospectus?

A
  1. Misleading, incorrect, or untrue statements.
  2. Omission of required information.
20
Q

What is the compensation process for a false or misleading prospectus?

A
  1. File suit for losses due to reliance on the prospectus.
  2. Sue issuer, directors, or signatories.
21
Q

What is the minimum subscription in a prospectus?

A

Amount specified in the company’s memorandum or entire share capital if not specified.

22
Q

Which companies must obtain a certificate of commencement of business?

A
  1. Public companies with share capital.
  2. Private companies converted to public within one year.
23
Q

What conditions must be fulfilled to obtain a certificate of commencement of business?

A
  1. Shares allotted for minimum subscription.
  2. Directors pay full amount for their shares.
  3. No repayment liability to applicants.
  4. Verified declaration filed with the Registrar.
24
Q

What is the status of contracts made before obtaining the certificate of commencement of business?

A
  1. Provisional and non-binding before the certificate is obtained.
  2. Becomes binding once the certificate is issued.

Claw (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions