Recent Examples of prospectus from the Web
Spotify has tried to guide investors in its listing prospectus by disclosing the wide range of values at which shares have sold in private transactions.
Companies now have the option to file an initial draft of their IPO prospectus with regulators and make adjustments before unveiling it publicly.
The preliminary prospectus is available at j.mp/oncosec.
While the company is inching closer to profitability, Dropbox outlined in its deal prospectus its focus to get more of those users to pay up.
No sale price is listed in the prospectus, shown here.
The prospectus for one of the bonds said the proceeds could be used for general corporate purposes.
Pinnacle Renewable Energy Inc, a wood pellets producer owned by Canadian private equity firm Onex Corp, filed a preliminary prospectus with the Toronto Stock Exchange for an initial public offering of its common shares.
Lexin on Tuesday filed a revised listing prospectus with the Securities and Exchange Commission, adding language that stated that some of its existing shareholders might purchase shares in its IPO.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'prospectus.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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.
Origin and Etymology of prospectus
First Known Use: 1765See Words from the same year
Financial Definition of PROSPECTUS
What It Is
How It Works
To get an idea of the role of the prospectus, let's assume Company XYZ is pursuing an IPO. Before launching the IPO, Company XYZ must first file a registration statement, which discloses all material information about the company, with the SEC. Part of the registration statement is the prospectus, which must be provided to all purchasers of the new issue.
After Company XYZ files the registration statement with the SEC for review, a cooling-off period begins. During this 20-day period, securities brokers can discuss the new IPO with clients, but the only information that can be distributed is the preliminary prospectus.
When the registration statement becomes effective, Company XYZ will amend the preliminary prospectus to add such important information as the offering price and the underwriting spread. This final prospectus must contain:
Description of the offering
History of the business
Description of management
Use of proceeds
Description of the underwriting
Risks to buyers
Legal opinion regarding the formation of the company
When the final prospectus is released, brokers can take orders from those clients who indicated an interest during the cooling-off period. A copy of the final prospectus must precede or accompany all sales confirmations.
Why It Matters
The role of the prospectus is the make investors aware of the risks of an investment. Without this information, they would essentially have to make investments "sight unseen." This disclosure also protects the company from claims that it did not fully disclose enough information about itself or the securities in question.
PROSPECTUS Defined for English Language Learners
Definition of prospectus for English Language Learners
: a printed statement that describes something (such as a new business or investment) and that is sent to people who may want to be involved in it or invest in it
: a book or document that provides information about a school, business, etc.
legal Definition of prospectus
Seen and Heard
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