| Prospectus |
 1. A formal legal document describing details of a corporation. The prospectus is generally created for a proposed offering (usually an IPO), but they can still be obtained from existing businesses as well. The prospectus includes company facts that are vitally important to potential investors.
2. In this case of mutual funds, a prospectus describes the fund's objectives, history, manager background, and financial statements.
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The prospectus is a document that makes investors aware of the risks of an investment.
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Don't Forget To Read The Prospectus! - Learn to decipher the secret language of the prospectus - it can tell you a lot about a company's future.
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Digging Deeper: The Mutual-Fund Prospectus - The legal jargon of the document can be daunting, but here's a guide to help you get to the important stuff. |
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