Final Prospectus

DEFINITION of 'Final Prospectus'

1. The final version of a prospectus for a public offering of securities. This document is complete in all details concerning the offering and is referred to as a "statutory prospectus" or "offering circular."

2. Because open-end mutual funds are continuously offering shares to the public, a fund prospectus is usually updated annually and made available to the public. Mutual fund prospectuses are all of the "final" variety.

BREAKING DOWN 'Final Prospectus'

1. With public offerings of securities, investors first receive what is called a preliminary prospectus, commonly called a "red herring" because of the pinkish color of the paper on which it is printed. Subsequently, the final prospectus is made available to investors who are considering a purchase of the security in question. A key difference between a final prospectus and a preliminary prospectus is that the final prospectus contains the security's price.

RELATED TERMS
  1. Prospectus

    A formal legal document, which is required by and filed with ...
  2. Short Form Prospectus Distribution ...

    A system that allows firms making an issue to produce a short ...
  3. Red Herring

    A preliminary prospectus filed by a company with the Securities ...
  4. SEC Form 424A

    The prospectus form that a company must file if it has made significant ...
  5. Offering Circular

    An abbreviated prospectus for a new security listing. Delivered ...
  6. SEC Form S-20

    A filing with the Securities and Exchange Commission (SEC), more ...
Related Articles
  1. Fundamental Analysis

    What's a Prospectus?

    The Security and Exchange Commission (SEC) requires that any company raising money from potential investors through the sale of securities must file a prospectus with the SEC and then provide ...
  2. Mutual Funds & ETFs

    How To Read A Prospectus

    How To Read A Prospectus
  3. Professionals

    The Prospectus

    While the SEC is reviewing the securities’ registration statement, a registered representative is very limited as to what they may do with regard to the new issue. During the cooling ...
  4. Professionals

    The Prospectus

    While the SEC is reviewing the securities’ registration statement, a registered representative is very limited as to what they may do with regard to the new issue. During the cooling off ...
  5. Mutual Funds & ETFs

    Reading A Prospectus

    Reading a Prospectus Introduction
  6. Fundamental Analysis

    Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  7. Investing

    An Insight on the Prospectus of Corporate Bonds

    Making a well-informed decision with respect to buying a corporate bond involves reading the significant facts and details of the prospectus document.
  8. Professionals

    A. Introduction: Issuing Corporate Securities

    The Securities Act of 1933 was the first major piece of securities industry legislation and it regulates the primary market.
  9. Professionals

    PROSPECTUS TO BE PROVIDED TO AFTERMARKET PURCHASERS

    Prospectus To Be Provided To Aftermarket Purchasers Certain investors who purchase securities in the secondary market just after a distribution must also be provided with the final prospectus. ...
  10. Professionals

    THE SECURITIES ACT OF 1933

    The Securities Act of 1933 was the first major piece of securities industry regulation that was brought about largely as a result of the stock market crash of 1929. Other major laws were also ...
RELATED FAQS
  1. What is the difference between a prospectus and summary prospectus?

    Learn about the differences between the summary prospectus and statutory, or full, prospectus, and discover what mutual fund ... Read Answer >>
  2. How can I get a mutual fund prospectus?

    Read and understand the prospectus before investing in a mutual fund. You can obtain a copy from the fund company, your financial ... Read Answer >>
  3. How can I get a free mutual fund prospectus?

    Obtain a free copy of a mutual fund prospectus from the dealer or use one of these online resources to download an electronic ... Read Answer >>
  4. What is the most important section in an investment company's prospectus?

    Learn about the various elements included in an investment company's prospectus and which ones are most important for investors ... Read Answer >>
  5. What information should I focus on in my mutual fund's prospectus?

    Understand what information investors can find in a mutual fund prospectus and what they should focus on when reviewing the ... Read Answer >>
  6. What information does the SEC require in an investment company's prospectus?

    Understand the lengthy list of required information that investment companies such as mutual funds must include in a prospectus ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center