The prospectus is summarization of the results of detailed financial documents that a firm files with the SEC prior to being given approval to issue securities.

Question

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A prospectus is a condensed version of the financial and economic disclosure documents that a firm files with the Securities and Exchange Commission prior to the new issuance of stocks or bonds. The prospectus is sent to anyone who is interested or committed to purchasing the securities.

The Prospectus Is Summarization of the Results of Detailed Financial