Prospectus - Definition and Overview

A prospectus is a legal document that institutions and businesses use to describe what they have to offer for participants and buyers.

The documents go into detail about a business; they give history of the company, lists of officers who operate such a business, any litigation that is taking place, financial data, and a list of operations. These documents, when used by businesses, are usually given out for potential investors as part of the Initial Public Offering. Although usually very detailed, the public prospectus' are usually very condensed compared to the registration statements filed with the Securities and Exchange Commission.

A school prospectus sent to potential (prospective) students to attract them to apply for admissions. A school or University prospectus often contains information about the school and the available courses, including advice on how to apply and the benefits of accepting a place. Many Universities have individual prospectuses for each course or group of courses that they offer.