Why Are Public Corporations Required to Give the Investing Public

question 66

Essay

Why are public corporations required to give the investing public information about any new issue of shares in a statement called a prospectus?

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Definitions:

Eruption Column

A towering cloud of ash, gas, and volcanic debris that rises above a volcano during an explosive eruption.

Caldera

A large, bowl-shaped volcanic depression, formed by the collapse of land following a volcanic eruption or the emptying of a magma chamber.

Basin-shaped Depression

A rounded or oval valley or hollow in the Earth's surface, typically formed by erosion or the collapse of a volcanic crater.

Calderas

Large, basin-like depressions formed by the collapse of a volcano after a massive eruption, usually holding a lake.