Startup Terms Glossary
What is Prospectus?
In order to comply with federal law, any time new shares are made available to the public, documents must be filed with the Securities Exchange Commission. A prospectus is an example of one of these documents. This paperwork contains the financial details of each share and is made available to the public. A prospectus is then used for investors to make more informed decisions.
Some information typically found in a prospectus:
- Element 1. Investment goals
- Element 2. Financial management
- Element 3. Fees
Here’s another web page about a prospectus