Concept:A prospectus is a formal document that serves as an invitation to the public to buy shares in a public limited company.
Explanation:A public limited company issues a prospectus when it wants to raise capital from the public.
The prospectus gives important details about the company and the shares being offered.
Its main purpose is to invite the public to subscribe for or buy shares in the company.
It is not a document for collecting dividends, because dividends are paid to shareholders after profits are earned.
It is also not just a statement about types of shares, nor a list of shareholders' names.
Therefore, the prospectus is best described as an invitation to the public to buy shares.
Answer:C. an invitation to the public to buy shares.