Question

What is the general requirement for information contained in a prospectus?

1) Continuous disclosure of material facts.
2) Full, true and plain disclosure of material facts.
3) Timely disclosure of relevant information.
4) Uniform application of listing requirements.

Answer 1

A prospectus must provide full, true, and plain disclosure of material facts, ensuring transparency and accuracy as required by securities law.

Step-by-step explanation:

The general requirement for information contained in a prospectus is full, true and plain disclosure of material facts. This means that all significant information that could influence an investor's decision must be presented clearly and honestly, without any omissions or misleading data. The contents of a prospectus are governed by securities law, which establishes the need for transparency and accuracy to protect investors and maintain fair markets.