Glossary

Prospectus

is a legally mandated document published by every firm offering its securities to public for investment purchase. It must comply with strict legal requirements and is filed for approval with the country’s securities inspectorate. A prospectus must disclose essential information such as firm’s objectives, primary business activity, background and qualification of principal officers, current financial position, projected financial statements, assumptions underlying the projections, foreseeable risks to the firm, offering price on the stock (shares), and (in case of bonds and notes) how the interest and principal will be paid.
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