A
prospectus, in
finance, is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about
mutual funds,
stocks,
bonds and other
investments, such as a description of the company's business,
financial statements, biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information. In the context of an individual securities
offering, such as an
initial public offering, a prospectus is distributed by
underwriters or
brokerages to potential investors.