Difference between a prospectus and shelf prospectus?

A prospectus and a shelf prospectus contain all the necessary information about the company that can help investors make an informed decision about their investment.

The main difference between a prospectus and a shelf prospectus is that :

The issuing company can file a prospectus when it wants to issue equity or debt securities, but a shelf prospectus can only be used when issuing debt securities/bonds.

A shelf prospectus allows a company to issue debt securities multiple times without having to file a new prospectus each time. However, if a company files a prospectus, it must file a new prospectus each time it wishes to raise funds through debt or equity securities.

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