Definition

Prospectus

Prospectus is a document that presents a company’s financial data for several consecutive years, discusses its position in its industry, describes how it will use the funds raised by a securities sale, and summarizes other information that well-informed investors should have.


A statement containing information about a firm, its management, its operations, the purpose for a stock issue, and other information that might be helpful to a potential buyer of securities.

Webster Dictionary Meaning

1. Prospectus
- A summary, plan, or scheme of something proposed, affording a prospect of its nature; especially, an exposition of the scheme of an unpublished literary work.
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