Prospectus

In finance, a “prospectus” is a formal disclosure document that describes an investment offering to potential buyers. It typically gives investors information about a specific stock, mutual fund, bond, or other types of investment, including a description of the company’s business model, financial statements, a list of material properties, and other important information. Underwriters and brokerages typically distribute prospectuses to potential buyers who may purchase a security through an initial public offering (IPO).