Prospectus Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Prospectus, written in plain English, along with examples of how it is used.

What is Prospectus?

It is a legal set of documents which carries the details of the company details, which must be supplied to the investor (despite the fact that its hard to understand for a layman) before they invest in the stock of the company. It contains the full details of the company like finance, directors, liabilities and assets, balance sheets, debts etc, which can affect the investors decison on whether to invest in the company.