- prospectus
- A document published by a corporation, or by persons acting as its agents or assignees, setting forth the nature and objects of an issue of shares, debentures, or other securities created by the company or corporation, the investment or risk characteristics of the security and inviting the public to subscribe to the issue. The principal document of a registration statement required by law to be furnished an investor prior to any purchase. It is the document which is to contain all material facts concerning a company and its operations so that a prospective investor may make an informed decision as to the merit of an investment.Federal securities laws (15 U.S.C.A. No. 77a) require that corporations making public stock offerings file a copy of the prospectus with the SEC and also provide a copy to all prospective purchasers. The content of the prospectus is governed by federal securities laws and regulations. The term "prospectus" means any prospectus, notice, circular, advertisement, letter, or communication, written or by radio or television, which offers any security for sale or confirms the sale of any security. Securities Act of 1933, No. 1; 15 U.S.C.A. No. 77b(10).See also offering circular
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.