Prospectus Legal Meaning and Definition

Here is a simplified definition of the legal term Prospectus.

Prospectus (noun):

A legal document provided by a company for interested investors which includes comprehensive details about the company's financial health, assets and liabilities, operational information, directors, and other relevant data. This informative document helps investors make informed decisions on their potential investment. It often includes complex details like balance sheets and financial statements, and is provided to prospective investors before they commit to investing in a company.