Series 24: The Prospectus

The Prospectus

When most of us think of a prospectus, we think of a long detailed document. Actually a prospectus is any written or broadcast offer to sell securities. In order to protect investors, the SEC has implemented many restrictions on the form that a prospectus can take. For your Series 24 exam, you will need to know the definition of a prospectus under the Securities Act. Section 2 of the Securities Act of 1933 gives the following broad definition of prospectus:

Any notice, circular, advertisement, letter, or com