Prospectus (finance)

A prospectus, in

EDGAR

and its equivalents in other countries.

United States

In a securities offering in the United States, a prospectus is required to be filed with the

Securities and Exchange Commission (SEC) as part of a registration statement

. The issuer may not use the prospectus to finalize sales until the registration statement has been declared effective by the SEC, meaning it appears to comply on its face with the various rules governing disclosure unless the sale of securities is exempt from registration.

If a company has been filing

underwriter acting as issue manager (also called a bookrunning manager or "bookrunner

").

United Kingdom

Publication of information in relation to the issue of securities in the

European law Prospectus Directive. A prospectus must be published where certain types of securities either are offered to the public or are requested for admission on a regulated market. In the United Kingdom, the only regulated market is London Stock Exchange full list. The Alternative Investment Market

(AIM) does not constitute a regulated market, nor does the Professional Securities Market ("PSM") for issues of debt securities. There are numerous exceptions to the requirement to publish a prospectus, although an exempt company may still be required to publish listing particulars where it is seeking admission of its shares to the full list or an admission document where it is seeking admission of its shares to AIM.

The prospectus must be approved by the competent authority in the United Kingdom, which is currently the Financial Conduct Authority (FCA) in its capacity as the United Kingdom Listing Authority. If the purpose of the prospectus is to induce people to engage in an investment activity, it will also need to be issued or approved by an 'authorised person' or it will constitute an unlawful financial promotion under section 21 of the Financial Services and Markets Act 2000.

External links

United States

United Kingdom

See also

External links