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A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security.

A prospectus is a document or a publication by, or on behalf of, a corporation containing information on the character, nature, and purpose of an issue of shares, debentures, or other corporate Securities that extends an invitation to the public to purchase the securities. The content of a prospectus is regulated by federal law. It must contain all material facts relating to the company and its operations so that a prospective investor can make an informed decision as to the merit of the investment. A prospectus must be furnished to an investor before any purchase is made.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


n. a detailed statement by a corporation required when there is an issuance of stock to the general public. A prospectus includes the financial status, the officers, the plans, contingent obligations (such as lawsuits) of the corporation, recent performance and other matters which would assist the potential investor or investment adviser to evaluate the stock and the prospects of the company for profit, loss, or growth. The Federal Securities Act requires the filing of the prospectus with the Securities and Exchange Commission and the SEC's approval before any major stock issue. State laws generally require similar documentation for some issuances or offers of sales of stock within the state. Every potential purchaser of a new stock shares must receive a copy of the prospectus, even though they are difficult to understand. Offerings to the public of limited partnership interests may require that a prospectus be prepared and delivered to each investor. (See: corporation, stock, limited partnership, Blue Sky laws)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
With regard to the offering circular, characterized as a "thorny issue", the bank sources said it is "bound to take some time" because of the enormous changes that occurred throughout last year.
Usually, the disclosure is provided by a "Uniform Franchise Offering Circular." Another document, called the "FTC Format," is allowed in many states, but is used less often.
The offering will be made pursuant to an offering circular dated November 14, 2017 and is anticipated to qualify as Tier 2 capital for Manulife.
Serving as joint book-running managers are Merrill Lynch, Pierce Fenner & Smith Incorporated, Goldman Sachs & Co LLC, JP Morgan Securities LLC and Morgan Stanley & Co LLC, while the Williams Capital Group LP is serving as co-manager in the offering that is being made only by means of an offering circular.
Wells said the pricing terms were determined as of the price determination date, which was 11:00 pm ET on November 21, 2013, in accordance with the terms set out in the confidential offering circular for the exchange offers, dated November 6, 2013, and the related letter of transmittal.
While some franchisors merely post their offering circular on their Web site, this is not common.
Those who received an initial offering circular from the bank still may buy stock until Feb.
Based on an offering circular posted by the PSE on Friday, the follow-on offering of PHR would run from March 4 to 8 this year after a price-setting on Feb.
The offering was made pursuant to an offering circular dated November 14, 2017.
The exchange offer is being conducted by COF upon the terms and subject to the conditions set forth in a confidential offering circular, dated May 17, 2013 and related letter of transmittal.
This communication is not an offering, which can only be made by an offering circular registered with applicable state authorities.
Don't forget to obtain a copy of the franchisor's disclosure document (also called a Uniform Franchise Offering Circular) and get a copy of the Federal Trade Commission's Consumer Guide to Buying a Franchise.