prospectus

(prə-spĕk'təs)
n.

1. A formal summary of a proposed venture or project.
2. A document describing the chief features of something, such as a business, an educational program, or especially a stock offering or mutual fund, for prospective buyers, investors, or participants.

[Latin prōspectus, distant view. See prospect.]

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The plural form is prospectuses. The form prospecti is not only pedantic but ignorantly pedantic, since in Latin prospectus is a fourth-declension noun with a plural form prospectus (which is not used in English).

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Informational document stating the intent to issue securities, required by the Securities and Exchange Commission. Also called offering circular. A prospectus is the legal document stating the purpose of the security issue, describing in detail the primary business of the issuer and the issuer's financial condition, and listing the principal officers. It also describes how shares are offered for sale and dividends paid. A Mutual Fund prospectus describes Redemption rights of investors who liquidate their holdings, and also lists management fees, redemption fees, and other charges payable by the investor if the fund being offered is a Load Fund. A prospectus is preceded by a preliminary disclosure known as a Red Herring. The prospectus itself is an offer to sell shares to the public. A prospectus supplement is an additional statement filed with the SEC containing information about the issuer not mentioned previously; supplements are normally issued in conjunction with Shelf Registration securities and contain further information on the particular issue being sold.

The Securities Act of 1933 requires only that issuers give full disclosure of information pertaining to a proposed offering. The SEC does not approve or disapprove the offering, but it allows the prospectus and the Registration Statement to clear on the 20th day after the filing date. If the SEC objects to the offering or asks for more information, the 20-day waiting period begins again unless an exception is granted.

A printed descriptive statement about a business or investment that is for sale, to invite the interest of prospective investors.


Example: A syndicator prepared a prospectus that disclosed all material facts about the property being offered. Before it is approved by the SEC or state securities commissioner, it is called a red herring.
If it need not be approved, it is called a descriptive memorandum .

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noun

A document, such as a list or an outline, that gives, for example, the order of events in a public performance or the chief features of a stock offering: bill¹, program, syllabus. See planned/unplanned, words.

This entry contains information applicable to United States law only.

A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security.

A prospectus is a document or a publication by, or on behalf of, a corporation containing information on the character, nature, and purpose of an issue of shares, debentures, or other corporate securities that extends an invitation to the public to purchase the securities. The content of a prospectus is regulated by federal law. It must contain all material facts relating to the company and its operations so that a prospective investor can make an informed decision as to the merit of the investment. A prospectus must be furnished to an investor before any purchase is made.

A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public. A prospectus should contain the facts that an investor needs to make an informed investment decision.

Also known as an "offer document".

Investopedia Says:
There are two types of prospectuses for stocks and bonds: preliminary and final. The preliminary prospectus is the first offering document provided by a securities issuer and includes most of the details of the business and transaction in question. Some lettering on the front cover is printed in red, which results in the use of the nickname "red herring" for this document. The final prospectus is printed after the deal has been made effective and can be offered for sale, and supersedes the preliminary prospectus. It contains finalized background information including such details as the exact number of shares/certificates issued and the precise offering price.

In the case of mutual funds, which, apart from their initial share offering, continuously offer shares for sale to the public, the prospectus used is a final prospectus. A fund prospectus contains details on its objectives, investment strategies, risks, performance, distribution policy, fees and expenses, and fund management.

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For a list of words related to prospectus, see:

• Corporations and Business Practices - prospectus: description of company, its property, and its operations, circulated to prospective investors
• Strategy and Tactics - prospectus: initial description and projection of a venture

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See words rhyming with "prospectus."

  See crossword solutions for the clue Prospectus.

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)

Dansk (Danish)
n. - prospekt, brochure

Nederlands (Dutch)
prospectus

Français (French)
n. - (gén) brochure, prospectus, prospectus d'émission

Deutsch (German)
n. - Prospekt, Studienführer

Ελληνική (Greek)
n. - περιγραφικό διαφημιστικό φυλλάδιο (κν. προσπέκτους), (οικον.) ενημερωτικό φυλλάδιο

Italiano (Italian)
prospetto, prospetto informativo, programma, manifesto di emissione

Português (Portuguese)
n. - prospecto (m)

Русский (Russian)
рекламный проспект, каталог, перечень курсов и лекторов в вузе

Español (Spanish)
n. - prospecto, folleto informativo

Svenska (Swedish)
n. - broschyr, kursprogram, prospekt

中文（简体）(Chinese (Simplified))
创立计划书, 样张, 内容说明书

中文（繁體）(Chinese (Traditional))
n. - 創立計劃書, 樣張, 內容說明書

한국어 (Korean)
n. - 설립취지서

日本語 (Japanese)
n. - 趣意書, 学校案内

العربيه (Arabic)
‏(الاسم) نشرة موضحه لشركه أو معهد أو غيره‏

עברית (Hebrew)
n. - ‮תשקיף, עלון-הסבר, תסביר, תוכנייה, פרוספקט‬

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