A prospectus is an advertisement placed in a newspaper or magazine that provides a listing of the underwriting syndicate involved in the new offering,in addition to basic information on the offering.

Question

Quizplus · Accepted Answer

A prospectus is a formal legal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering for sale to the public, primarily including the company's financial performance, risks involved, and details on the offering, rather than an advertisement in newspapers or magazines listing the underwriting syndicate.

A Prospectus Is an Advertisement Placed in a Newspaper or Magazine