1.2.4.1.1 Public Offering Prospectus for New Securities
A prospectus is a legal document filed with the SEC that provides detailed information about securities being issued for sale to the public. Its contents must include the name of the issuer and title of the securities, the name of the lead underwriters, and the underwriters’ compensation. It must also include the use the issuer intends to put to the offering’s proceeds, the risk factors associated with the issue, and the financial interests of the issuer’s associates. Risks particular to the issuer might include an issuer’s lack of an operating history, a recent lack of profitable operations, and the lack of a market for the issuer’s securities. These should be explained concisely, logically, and in plain language.
A prospectus must accompany all sales of securities that are listed on exchanges for at least 25 days from the initial public offering. Prospectuses must a