A major purpose of the prospectus is to:

Question

Quizplus · Accepted Answer

The prospectus is a legal document that must be filed by companies with the Securities and Exchange Commission (SEC) before an initial public offering (IPO). One of its main purposes is to disclose important information about the security being offered to potential investors, including risks associated with investing in the company. Informing investors of the security's rate of return and dividend payment dates may also be included, but they are not the major purpose of the prospectus. Additionally, the prospectus does not distribute stock warrants to prospective investors.

A Major Purpose of the Prospectus Is To