Articles on: Investment Glossary


The official selling circular that must be given to purchasers of new securities registered with the Securities and Exchange Commission. It summarizes the longer Registration Statement filed with the Commission. It discloses such material information as the issuer’s property and business, the nature of the security offered, the use of proceeds, the issuer’s competition and prospects, management’s experience, history, and remuneration, and certified financial statements. A preliminary version of the prospectus, used by brokers to obtain indications of interest from investors, is called a Red Herring.

Updated on: 24/04/2023

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