A prospectus is a detailed explanation of how a corporation is reinvesting its profits, and its purpose is to justify a decision to not pay a dividend.

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A prospectus is a document that companies use to describe the securities they are offering for sale to the public, primarily used for initial public offerings (IPOs) or when issuing new securities, and it contains details about the investment offering, company's financial status, and future plans, not specifically about reinvesting profits or justifying decisions on dividends.

A Prospectus Is a Detailed Explanation of How a Corporation