Prospectus (finance): Difference between revisions

{{more footnotes|date=October 2015}}

A '''prospectus''', in [[finance]], is a disclosure document that describes a [[Security (finance)|financial security]] for potential buyers. It commonly provides investors with material information about [[mutual fund]]s, [[stock]]s, [[Bond (finance)|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 [[public offering|offering]], such as an [[initial public offering]], a prospectus is distributed by [[underwriters]] or [[brokerage firm|brokerages]] to potential investors. Today, prospectuses are most widely distributed through websites such as [[EDGAR]] and its equivalents in other countries.