Prospectus

A prospectus is a formal legal document that provides detailed information about an investment offering, such as stocks, bonds, or mutual funds, to potential investors. It typically includes data about the company’s business, management team, financial statements, the type and number of securities offered, pricing, risks, use of proceeds, and other essential details that help investors make informed decisions. Prospectuses are required by securities regulators, such as the U.S. Securities and Exchange Commission (SEC), to ensure transparency and protect investors from fraud or misinformation. Mutual funds and companies updating securities offerings regularly publish prospectuses, which can be accessed through official databases or brokerage platforms.