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WHAT IS PROSPECTUS?
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Answer Posted / anandsurya
A prospectus is a legal document that institutions and
businesses use to describe the securities they are offering
for participants and buyers. A prospectus commonly provides
investors with material information about mutual funds,
stocks, bonds and other investments, such as a description
of the company's business, financial statements,
biographies of officers and directors, detailed information
about their compensation, any litigation that is taking
place, a list of material properties and any other material
information. In the context of an individual securities
offering, such as an initial public offering, a prospectus
is distributed by underwriters or brokerages to potential
investors.
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