Financial Terms Glossary

Prospectus

Formal

A formal summary of a business venture, or development proposal that is used to inform potential investors about prospects for a business and to persuade investors to commit funds to the project.

Informal

A very grand title for a wonderfully complicated document. From the Latin -and nothing to do with gold mining - it's the formal document issued by companies outlining proposals for a business and their requirements to raise capital to fund that venture. PS - It's a criminal (ie Jail) offence to knowingly make a false statement in a prospectus. Now that isn't in the serious definition.

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