A prospectus is a statement filed by the issuing company before the issuance of a new security that contains detailed information about the company and the proposed new issue.

Question

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A prospectus is a formal and comprehensive document that introduces and describes the proposed new security and the issuing company. It includes information such as the issuer's financial statements, management background, risks associated with the investment, and use of proceeds from the offering. The purpose of the prospectus is to provide investors with the necessary information to make an informed investment decision.

A Prospectus Is a Statement Filed by the Issuing Company