What is prospectus ?
Prospectus is basically any notice, circular, advertisement or other document inviting offers from the public for subscription or purchase of any security of a body corporate.
The prospectus provides details about the investment/security and the offering.
The prospectus normally begins by outlining the investment's dangers before going into greater detail later on.
A prospectus includes some of the following information:
- A brief summary of the company’s background and financial information.
- The name of the company issuing the stock.
- Whether an offering is public or private.
- Names of the company’s principals.
- Names of the banks or financial companies performing the underwriting.
- The number of shares.
- The type of securities being offered.
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