prospectus

A prospectus is a formal document that provides information about a potential investment or program to help readers make informed decisions. The term has two broad senses. In the financial context, a prospectus describes securities that are being offered for sale to the public. In education, a prospectus is a publication by a college, university, or other institution that describes courses, programs, facilities, admissions requirements, and campus life.

In securities offerings, the prospectus is a key regulatory document. It discloses material information about the issuer, the securities being offered, the use of proceeds, management and ownership, financial statements, risk factors, and legal disclosures. Its purpose is to aid investors in assessing the offering and to provide a basis for comparing it with other investments. In many jurisdictions, the prospectus must be filed with a securities regulator and approved before sales begin. There can be a preliminary or redacted version, often called a red herring, issued before the final terms are set, followed by a final prospectus that includes the offering price and other specifics.

Educational prospectuses serve a different purpose. They describe the institution’s programs, curricula, facilities, entry requirements, tuition, scholarships, and campus services to prospective students and their families. These documents function as marketing and informational materials rather than regulated investment disclosures, though they may be subject to consumer protection or advertising standards.

Other related uses include fund prospectuses for mutual or exchange-traded funds, and private placement memoranda used in non-public offerings. In varying legal contexts, the exact content and naming may differ, but the core aim remains to present essential information about a proposed opportunity.