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+--- Thread: Difference between Prospectus and Offer for Sale (/showthread.php?tid=3010)
Difference between Prospectus and Offer for Sale - zafar - 03-13-2006
Hi Brothers,
Can anybody explain the difference
between the two terms "Prospectus" and "Offer for sale"?
Regards,
Zafar
- Ali Akbar - 03-13-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zafar</i>
<br />Hi Brothers,
Is there anybody have clear understanding about the difference
between the two terms "Prospectus and Offer for sale"?
If Yes, ...
Regards,
Zafar
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Yup
Prospectus is usually issued by the company for the public offering of its new shrares.
Whereas offer for sale document is usually issued by a person other than company for offering the shares of the mentioned company, held by him, to the public, e.g as the govt divested its shareholding in different companies, like in OGDC, KAPCO etc., through IPO. Moreover, a person having more than 10% shareholding can also divest his shares through offer for sale document for the public.
The requirement of issuance of offer for sale document is inline with the concept of insider trading.
Hope it will help u out
ICAPians, the unparalleled..