prospectus

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Prospectus

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.

prospectus

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)

prospectus

noun analysis, announcement, blueprint, bulletin, catalogue, description, outline, plan, platform, program, scheme, sketch, statement, summary, syllabus, synopsis
See also: issuance, plan, program, proposition
References in periodicals archive ?
Most industry statistics indicate that approximately 30 percent of franchisors include an Item 19 earnings claim in their offering circular.
The franchisor's offering circular and franchise agreement should squarely address this issue with statements that any franchisor survey or franchisor's approval of a site or location does not suggest or guarantee success.
Similar to the site survey commandment, a franchisor's offering circular and franchise agreement should address impact/encroachment related issues.
Thou shalt use some form of questionnaire to confirm no statements or representations were made during the sales process that contradicted the offering circular or franchise agreement.
If an unaudited balance sheet is used to meet the above requirement, an audited balance sheet dated as of the end of the franchisor's last fiscal year ending 90 days or more before the filing date of the offering circular.
Some states permit the offering circular to include the above financial statements of the parent company.
States can require that the offering circular include a separate financial statement for each entity related to the franchisor.
It should be reviewed in conjunction with the Bank of Birmingham (IO) Offering Circular, copies of which are available from Bank of Birmingham (IO) upon request.
The site enables visitors to view the offering circulars of various de novo investment opportunities around the country, and provides the contact information for the proposed banks so that interested parties can inquire about making an investment.