A prospectus is a legal document that a corporation issues to potential investors when it wants to offer securities (such as shares or bonds) to the public in order to raise funds. The prospectus contains critical information about the firm, its business activities, financial statements, the dangers of investing in the company, and data on the securities being offered for sale. It is an essential document for investors to use when deciding whether or not to invest in the firm.
A prospectus normally contains the following information:

• Company Overview: Provides background information on the company's history, management team, and business plan.
• Financial Statements: The audited financial statements of the company, which include balance sheets, income statements, and cash flow statements.
• Risk Factors: Extensive disclosure of potential risks that may have an influence on the company's performance and the value of the securities being issued.
• Use of Proceeds: The company's plans for the funds raised through the offering.
• Details on the amount of shares or securities being offered, their price, and any underwriting agreements.
• Legal and Regulatory Information: Information regarding the company's legal structure and any regulatory approvals required for the offering.

Shares:

Shares, often known as stocks or equity, indicate a company's ownership. When you purchase stock in a firm, you become a shareholder and are entitled to a piece of the company's assets and income. Companies issue stock to raise funds and fund operations or expansion.
Shares are classified into two types:

a.Common Shares: The most common sort of share issued by companies. Common shareholders have voting rights at general meetings of the corporation and may receive dividends if the company distributes profits.

b.Preferred Shares: Unlike common shareholders, preferred shareholders do not have voting rights but have a greater claim on the company's assets and earnings. Preferred shareholders are compensated before common shareholders in the event of bankruptcy or liquidation.

Share Capital :

A company's share capital is the total value of its shares. It denotes the portion of the company's equity supplied by shareholders. Share capital is an important component of a company's balance sheet since it reflects the company's financial health and the extent to which it is backed by equity.

Share capital is divided into two categories:

a.Authorized Share Capital: This is the maximum number of shares that a company is permitted to issue under its Articles of Association. It is the total amount of capital that the firm can raise without altering its Articles of Association by issuing shares.

b.Issued and paid for Share Capital: This is the portion of the authorized share capital that the corporation has actually issued and received paid for from shareholders. It denotes the value of shares currently held by investors.

A company's share capital might fluctuate over time for a variety of reasons, such as issuing new shares for fundraising, buying back shares, or consolidating shares. Any such adjustments normally necessitate shareholder approval as well as compliance with any regulatory requirements.