n NISM Certifications
XXI NISM Series XXI-A
Medium

The primary purpose of a Prospectus issued by a company during an IPO is to:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Provide detailed financial information to investors

    Correct answer

  2. B

    Declare dividends for shareholders

  3. C

    Issue bonds to the public

  4. D

    Appoint directors to the board

Why this is the answer

The prospectus contains essential information about the company, risks, and offering details.

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