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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 ?
This updated prospectus can be downloaded from Intrum's website at
'A prospectus contains publicity material of the university officials and only two pages of admission forms are valuable.
The committee also recommended bringing out separate prospectus by the sub-campuses from Shikarpur, Ghotki and Shahdadkot campuses.
It is worth mentioning that CMA has approved earlier and before the adoption of sukuk prospectus other prospectus to government and private agencies that exceeded RO300 million, which reflects the Omani capital market's ability to absorb large volumes of funding demands.
It will also be covered using the government's existing cash balances, the prospectus said, without giving a figure for the size of the balances.
Former SEC Commissioner Troy Paredes said at the IRI event that the agency moving forward on a VA summary prospectus has "been an issue near and dear to my heart," and that it would be a "good step forward." He added that "there is some opening for movement" on a VA prospectus under the SEC's "disclosure review [initiative] that's underway at the commission."
"The interactive prospectus allows our prospective students to gain a deeper insight into what we offer as a university, and to see and hear for themselves what life as a student on Teesside is like, the courses we offer and the support and resources available."
prospectus supplement (together with the related base prospectus) is available on the SEC's website ( and the Canadian prospectus supplement (together with the related Base Shelf Prospectus) is available on the SEDAR website maintained by the Canadian Securities Administrators at
A prospectus regarding the Offer has been approved and registered by the Swedish Financial Supervisory Authority (FSA).
Following receipts for the final base shelf prospectus from provincial securities regulators in each of the provinces of Canada, the final base shelf prospectus will be valid for a 25-month period.
On the longer-term agenda were guidelines for a summary prospectus for variable annuities (VAs), similar to what the SEC adopted several years ago for mutual funds.
The specialist further education college for disabled students in Tile Hill has developed an interactive prospectus called iP.