What is a prospectus? Do all the companies issue it? What could be an alternative to prospectus? Write a few lines about it.

Prospectus:

 
A prospectus is an invitation to the public to purchase shares or debenture of a company. In other words a prospectus may be defined as any document that includes any notice, circular, advertisement or other document inviting offers from the public for the subscription or purchase of any share or debentures of a body corporate.

No, all the companies do not issue a prospectus. Only the Public Limited Companies having permission from the Securities and Exchange Commission may issue a prospectus.

Alternative to a prospectus:

 
As per Section-141 a Public Limited Company having a share capital and not issuing prospectus must at least 31 days before the first allotment of shares or debentures, file with the Registrar for registration a statement in lieu of prospectus. The statement must be in the form prescribed in schedule - IV of the Companies Act-1994. Every private limited company which is converted to a public limited company shall also a statement in lieu of Prospectus as per Schedule-V.