What is a Prospectus?
A Prospectus is a final document that is required by and filed with the Securities and Exchange Commission (SEC). It provides details about an investment offering to the public and is filed for offerings of stocks, bonds, and mutual funds. The Prospectus helps investors to make more informed decisions on investment because it contains a host of relevant information about the investment or security. All forms of the prospectus are in existence to attract or inform clients, members, buyers, or investors.
Geeky Takeaways:
- A Prospectus is a legal document describing a company’s securities that have been put on sale.
- It generally discloses the company’s operations along with the purpose of the securities being offered.
Table of Content
- Prospectus: An Overview
- Types of Prospectus
- Why is Prospectus useful for Investors?
- Conclusion
- Frequently Asked Questions (FAQs)