Definition of Prospectus

Prospectus is a formal written offer to sell securities that provides an investor with the necessary information to make an informed decision.
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A prospectus explains the investment proposition for a new or existing business. The prospectus must disclose any material risks and information according to the securities laws. Investors should read a prospectus carefully before making an investment.

Prospectus References On This Site

These Gaebler.com articles mention this glossary term:

• Understanding IPOs - If the company has an existing auditor , they would usually be the ones who would prepare the prospectus. The prospectus contains financial information about the company and...
• Understanding IPOs - If the company has an existing auditor , they would usually be the ones who would prepare the prospectus. The prospectus contains financial information about the company and...