The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

A legal document disclosed by a company (or ‘entity’) that wants to raise capital from the public. It discloses the position of the company, its outlook for the future, and explains the reason why it’s seeking to raise capital. 

Prospectus definition


A legal document disclosed by a company (or ‘entity’) that wants to raise capital from the public. It discloses the position of the company, its outlook for the future, and explains the reason why it’s seeking to raise capital. These might include:

  • An initial public offering (IPO)
  • An issue of corporate bonds
  • A managed investment fund trying to attract investors

A prospectus contains facts and reports that a potential investor should know before committing capital. Information in a prospectus might include:

  • An overview of the entity
  • Historical financial reports
  • Relevant market data

The information may be reviewed and altered up until the offering is finalised. 

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms