Prospectus A formal legal document describing details of a corporation. The prospectus is generally created for a proposed offering (usually an IPO), but they can still be obtained from existing businesses as well. The prospectus includes company facts that are vitally important to potential investors. In this case of mutual funds, a prospectus describes the fund's objectives, history, manager background, and financial statements. The part of the registration statement used as a selling document distributed by the underwriting syndicate to prospective investors. It contains information about the offering and the company, including financial information. Or, the selling document, reviewed by the SEC, offering pertinent information to public investors about a public company. It is commonly associated with Initial Public Offerings.
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