Definition of 'Prospectus'
The prospectus typically includes information about the company issuing the security, such as its financial statements, business plan, and management team. It also includes information about the security itself, such as its price, yield, and maturity date.
Prospectuses are required by law for most securities offerings in the United States. They are typically prepared by the company issuing the security and are reviewed by the Securities and Exchange Commission (SEC).
The SEC has strict rules governing the content of prospectuses. These rules are designed to ensure that investors have access to all of the information they need to make informed investment decisions.
Prospectuses are an important part of the investment process. They provide investors with the information they need to make informed decisions about whether or not to invest in a particular security.
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