Section 2(14) from the Companies Act 1913 defined a prospectus because meaning any prospectus, observe, circular, advertisement as well as other invitation, offering for the public for registration or purchase any shares or debentures of a company but didn’t include any buy and sell advertisement which shows within the face of it a formal prospectus has become prepared and filled out. So it’s a invitation. It is usually a means of indicating the soundness with the company and so that it helps in achieving faith with the public.
Lecture on Prospectus
