Formal written document to sell securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one, that an investor needs to make an informed decision. Prospectuses are used by mutual funds to describe the fund objectives, risks and other essential information. The New York Times Financial Glossary
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1. FINANCE a document produced by a company when inviting the public to buy its shares. By law, the company must include certain information in a prospectus, such as how the money is going to be used, what the chances of future success are etc:
• The full prospectus for the share sale will be out next Thursday.
ˈpathfinder proˌspectus FINANCE
a document produced by a company when it is inviting the public to buy its shares for the first time. It provides people who may want to buy the shares with information about the company, but does not give the price of the shares:
• The company has today published the pathfinder prospectus in connection with its forthcoming listing by way of placing on the London Stock Exchange.
2. a small book that advertises a school, college, new business etc:
• Each year the college publishes a postgraduate prospectus which contains details of the degree courses offered.
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A document produced by the issuing company, which provides detailed terms and conditions of a new stock or debt offering.
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prospectus UK US /prəˈspektəs/ noun [C]
► FINANCE, STOCK MARKET a legal document offering a company's shares for sale, and giving details about the company and its activities: »
An investor should carefully read the fund's prospectus before buying shares in an exchange.
► a small book giving details of a school or college, or of a new business or project: »
You can read all about the different courses in the university prospectus.
»a company prospectus
Financial and business terms. 2012.