Series 24: Prospectus

Prospectus

When most of us think of a prospectus, we think of a long, detailed document. Actually, a prospectus is any written or broadcast offer to sell securities. It can be detailed or it can be brief; what defines a prospectus is its content. Section 2 of the Securities Act gives the following broad definition of a prospectus:

Any notice, circular, advertisement, letter, or communication, written or broadcast, which offers a security for sale or confirms the sale of any security.

In practice, Part I of the appropriate form of the registration statement serves as the prospectus.

The SEC also provides