DEFINITION of 'Offering Circular'

An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue.

BREAKING DOWN 'Offering Circular'

An offering circular allows investors to access information regarding a new issue. It provides them with the important highlights without having them actually read the long-form prospectus. After the investor becomes interested, it is crucial that they read the final prospectus in order to view all the details that may have been left out of the offering circular.

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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. How does the Circular Flow Of Income model work?

    Learn about the circular flow of income model used by economists to represent the continuous, interdependent nature of money ... Read Answer >>
  6. What is the difference between a summary prospectus and an offering memorandum?

    Understand what investments require a summary prospectus or a offering memorandum, and learn the differences between the ... Read Answer >>
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