Prospectus (finance)

A prospectus, in finance, is a disclosure document that describes a financial security for potential buyers.

The issuer may not use the prospectus to finalize sales until the registration statement has been declared effective by the SEC, meaning it appears to comply on its face with the various rules governing disclosure unless the sale of securities is exempt from registration.

If a company has been filing Form 10-K with the SEC for a certain period of time, has a market capitalization above a certain threshold, and takes certain procedural steps, it is permitted to offer securities using a simplified prospectus that incorporates information by reference to its SEC filings.

A prospectus must be published where certain types of securities either are offered to the public or are requested for admission on a regulated market.

In the United Kingdom, the only regulated market is London Stock Exchange full list.