prospectus

noun

pro·​spec·​tus prə-ˈspek-təs 

prä-

plural prospectuses

1

: a preliminary printed statement that describes an enterprise (such as a business or publication) and that is distributed to prospective buyers, investors, or participants

2

: something (such as a statement or situation) that forecasts the course or nature of something

Did you know?

Prospectus Is a Word for the Forward-Thinking

Like prospect, prospectus looks forward. Thus, a prospectus originally outlined something that didn't yet exist, describing what it would become. This might even be a book; the great dictionary of Noah Webster, like that of Samuel Johnson, was first announced in the form of a prospectus, so that well-to-do people might actually subscribe to it—that is, pay for it in advance so that Webster would have money to live on while writing it. Soon, prospectus was being used to mean a description of a private school or college, intended to attract new students. Today the word very often means a description of a stock offering or mutual fund, whether new or not.

Example Sentences

Recent Examples on the Web

The prospectus shared with potential investors last year included the Fullmer letter, along with other letters endorsing the project. —Brian Maffly, The Salt Lake Tribune, 1 Feb. 2022

Per the prospectus, in preparation for BTS’ contract running out in 2024, HYBE has plans to debut at least six new groups starting around 2022. —Billboard, 26 Aug. 2021

Prime Infrastructure filed its IPO prospectus in June as the company stepped up investments in renewable energy projects including plans to build the world’s biggest solar farm in partnership with Solar Philippines—which was founded by businessman Leandro Leviste, a Forbes 30 Under 30 alumnus. —Jonathan Burgos, Forbes, 11 Oct. 2022

Secondly, the disclosure thresholds tend to be more lax, as no prospectus need be filed. —Christiaan Hetzner, Fortune, 6 Dec. 2021

According to the company’s prospectus, Trimegah Bangun Persada will raise between 14.7 trillion rupiah ($960 million) and 15.1 trillion rupiah ($983 million) by offering up to 12.1 billion shares, or 18% of its total, at a price range of 1,220 rupiah to 1,250 rupiah. —Gloria Haraito, Forbes, 16 Mar. 2023

The first facility is providing 55 megawatts of energy and services to customers, according to the prospectus. —Dallas News, 14 Apr. 2022

Its rise has shocked the financial world, which is now reckoning with a class of crypto traders who seem to prefer woofpapers to an IPO prospectus. —Grady Mcgregor, Fortune, 4 Nov. 2021

The deal could value Toast at as much as $16.5 billion based on the number of outstanding shares listed in the prospectus. —BostonGlobe.com, 13 Sep. 2021

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Word History

Etymology

Latin, prospect

First Known Use

1765, in the meaning defined at sense 1

Kids Definition

prospectus

noun

pro·​spec·​tus prə-ˈspek-təs 

prä-

plural prospectuses

: a printed statement that describes something (as a new business) and is sent out to people who may want to take part (as by investing)

Legal Definition

prospectus

noun

pro·​spec·​tus prə-ˈspek-təs 

plural prospectuses

-tə-səz

: 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 or sold to the public. The Securities Act defines prospectus broadly as “any prospectus, notice, circular, advertisement, letter, or communication, written or by radio or television, which offers any security for sale or confirms the sale of any security.”