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or scheme of something proposed, affording a prospect of its nature; especially, an exposition of the scheme of an unpublished literary work.
Share it:  Cite

More from this Section

  • Fair use
    Fair use refers to the limited use of copyrighted material for purposes such as criticism, ...
  • Opportunity Recognition
    Opportunity recognition refers to the process of perceiving the possibility of a profitable ...
  • Emotional motives
    Emotional motives refer buying reasons that rise from impulse and psychological needs ...
  • Sustained growth
    Sustained growth is defined as growth in both revenues and profits over a extended period ...
  • Liquidity Event
    Liquidity event refers to an occurrence such as a new venture going public, finding a ...