Audio Help [pruh-spek-tuh
s] Pronunciation Key | 1. | a document describing the major features of a proposed literary work, project, business venture, etc., in enough detail so that prospective investors, participants, or buyers may evaluate it: Don't buy the new stock offering until you read the prospectus carefully. |
| 2. | a brochure or other document describing the major features, attractions, or services of a place, institution, or business to prospective patrons, clients, owners, or members. |
] | Dictionary.com Unabridged (v 1.1) Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006. |
Prospectus
To learn more about Prospectus visit Britannica.com
| © 2008 Encyclopædia Britannica, Inc. |
| pro·spec·tus
Audio Help (prə-spěk'təs) Pronunciation Key
n.
[Latin prōspectus, distant view; see prospect.] |
| The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2006 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. |
prospectus
| Online Etymology Dictionary, © 2001 Douglas Harper |
| prospectus | |
noun | |
| 1. | a formal written offer to sell securities (filed with the SEC) that sets forth a plan for a (proposed) business enterprise; "a prospectus should contain the facts that an investor needs to make an informed decision" |
| 2. | a catalog listing the courses offered by a college or university [syn: course catalog] |
| WordNet® 3.0, © 2006 by Princeton University. |
prospectus [prəˈspektəs] noun
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| Kernerman English Multilingual Dictionary, © 2000-2006 K Dictionaries Ltd. |
Prospectus
1. 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.
2. In this case of mutual funds, a prospectus describes the fund's objectives, history, manager background, and financial statements.
Investopedia Commentary
The prospectus is a document that makes investors aware of the risks of an investment.
Related Links
Don't Forget To Read The Prospectus!
The Murky Waters Of The IPO Market
IPO Basics Tutorial
Digging Deeper: The Mutual Fund Prospectus
See also: Final Prospectus, Gun Jumping, IPO, Mutual Fund, Public Offering Price (POP), Red Herring
| Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc. |
prospectus
- A formal written document relating to a new securities offering that delineates the proposed business plan or the data relevant to an existing business plan
information needed by investors to make educated decisions whether to purchase the security. Theprospectus includes financial data, a précis of the firm's business history, a list of its officers, a description of its operations, and mention of any pending litigation. A prospectus is anabridged version of the firm's registration statement filed with the SEC. See also offering circular,red herring.
What is the most important information to be found in a mutual fund prospectus? Themutual fund prospectus is a legal document that contains valuable information for the investor. Now, it's easy to make fun of a prospectus. It's boring, and, yes, reading one is a cure for insomnia.But the prospectus is worth a close look, and a lot of investment mistakes could be avoided with a careful reading of the whole text. But several sections should be highlighted. First is the expensetable. All mutual funds have to lay out in a standardized format all the fees associated with owning a fund. If there is a fee to buy and sell a fund, it's there, plus all the ongoing charges imposedby the fund. Thoroughly scrutinize the financial highlights. It's a lot of numbers, but these figures give a reading on how the fund has done over time and in different markets. The investmentobjective section is critical. Is this the kind of fund you are looking for? Is it run, say, to generate dividend income, or is the money manager striving for long-term capital appreciation inhigh-tech stocks? The management page tells you whether the fund is run by an individual or by a committee.Christopher Farrell, Economics Editor, MinnesotaPublic Radio, heard nationally on Sound Money® |
| Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. |
Main Entry: pro·spec·tus
Pronunciation: pr&-'spek-t&s
Function: noun
Inflected Form: plural -tus·es/-t&-s&z/
: a preliminary printed statement describing a business or other enterprise and distributed to prospective buyers, investors, or participants; specifically: a description of a new security issue supplied to prospective purchasers and providing a disclosure of detailed information concerning the company's business and financial standing
NOTE: Under the Securities Act of 1933, the prospectus is part of the registration statement that must be filed with the Securities and Exchange Commission before a security may be offered orsold to the public. The Securities Act defines prospectus broadly as “any prospectus, notice, circular, advertisement, letter, or communication, written or by radio or television, whichoffers any security for sale or confirms the sale of any security.”
| Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc. |
Prospectus
Pros"pect\, n. [L. prospectus, fr. prospicere, prospectum, to look forward; pro before, forward + specere, spicere, look, to see: cf. OF. prospect. See Spy, v., and cf. Prospectus.]1. That which is embraced by eye in vision; the region which the eye overlooks at one time; view; scene; outlook. His eye discovers unaware The goodly prospect of some foreign land. --Milton. 2. Especially, a picturesque or widely extended view; a landscape; hence, a sketch of a landscape. I went to Putney . . . to take prospects in crayon. --Evelyn. 3. A position affording a fine view; a lookout. [R.] Him God beholding from his prospect high. --Milton. 4. Relative position of the front of a building or other structure; face; relative aspect. And their prospect was toward the south. --Ezek. xl. 44. 5. The act of looking forward; foresight; anticipation; as, a prospect of the future state. --Locke. Is he a prudent man as to his temporal estate, that lays designs only for a day, without any prospect to, or provision for, the remaining part of life ? --Tillotson. 6. That which is hoped for; ground for hope or expectation; expectation; probable result; as, the prospect of success. "To brighter prospects born." --Cowper. These swell their prospectsd exalt their pride, When offers are disdain'd, and love deny'd. --Pope.| Webster's Revised Unabridged Dictionary, © 1996, 1998 MICRA, Inc. |
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