Prospectus may be defined as any notice, circular and advertisement or any other document inviting offer from the public for the purchased of its shares and debentures. Only public company has the right to issue the prospectus. It is issued to the general public to give knowledge about the company and public easily known terms and condition of the investment. Private company can’t issue prospectus because government gives no right to the private company to invite the gen. public for purchased their shares.