Public issue is the most popular method of raising capital these days by the entrepreneurs.
This involves raising of funds directly from the public through the issue of prospectus.
1. It involves all public limited company can raise the required funds commonly by preparing a prospectus.
2. Prospectus helps a company to raise funds through public.
3. When an entrepreneur offers shares to the public for subscription he/she is required to comply with all the restrictions and formalities according to the provision of companies Act and SEBI Guidelines of pertaining to the initial issues, prospectus drafting and launch.
4. The issues must be listed on at least one stock exchange.