Dictionary of Law

prospectus :: legal definition

Prospectus - n. a detailed statement by a corporation required when there is an issuance of stock to the general public. A prospectus includes the financial status, the officers, the plans, contingent obligations (such as lawsuits) of the corporation, recent performance and other matters which would assist the potential investor or investment adviser to evaluate the stock and the prospects of the company for profit, loss or growth. The Federal Securities Act requires the filing of the prospectus with the Securities and Exchange Commission and the SEC's approval before any major stock issue. State laws generally require similar documentation for some issuances or offers of sales of stock within the state. Every potential purchaser of shares of a new stock shares must receive a copy of the prospectus, even though they are difficult to understand. Offerings to the public of limited partnership interests may require that a prospectus be prepared and delivered to each investor.

See also: blue sky laws corporation limited partnership stock and Related Law Terms ↓

Related Law Terms

answer :: n. in law, a written pleading filed by a defendant ... emurrer general denial verification
articles of incorporation :: n. the basic charter of a corporation which spells ... year's taxes. See also: corporation
Attorney General :: n. in each state and the federal government the hi ... izenry. See also: Solicitor General
bankruptcy :: n. a federal system of statutes and courts which p ... y proceedings trustee in bankruptcy
blue sky laws :: n. laws intended to protect the public from purcha ... e sky." See also: corporation stock
bond :: n. 1) written evidence of debt issued by a company ... good up to the amount of the bond.
capital stock :: n. the original amount paid by investors into a co ... price. See also: corporation stock
cartel :: n. 1) an arrangement among supposedly independent ... Colombia. See also: antitrust laws
common stock :: n. stock in a corporation in which dividends (payo ... oration preferred stock share stock
consumer protection laws :: n. almost all states and the federal government ha ... rranty product liability securities
contract :: 1) n. an agreement with specific terms between two ... n oral contract unilateral contract
corporation :: n. an organization formed with state governmental ... ation public corporation securities
court-martial :: 1) n. a military court for trying offenses in viol ... the U.S. Court of Military Appeals.
dividend :: n. a portion of profit, usually based on the numbe ... . See also: corporation shareholder
ejusdem generis :: (eh-youse-dem generous) v adj. Latin for "of the s ... t was of land-based transportation.
element :: n. 1) an essential requirement to a cause of actio ... of action crime general plan zoning
general partner :: n. 1) usually one of the owners and operators of a ... ted partnership partner partnership
incorporate :: v. 1) to obtain an official charter or articles of ... te by reference incorporation stock
insider trading :: n. the use of confidential information about a bus ... o catch insiders. See also: insider
issue :: 1) n. a person's children or other lineal descenda ... the body incorporation share stock
jury :: n. one of the remarkable innovations of the Englis ... hallenge sequester venire voir dire
limited liability :: n. the maximum amount a person participating in a ... ted damages partnership shareholder
limited partnership :: n. a special type of partnership which is very com ... mited liability partner partnership
marriage :: n. the joining of a male and female in matrimony b ... of time without legal formalities.
maxims :: n. a collection of legal truisms which are used as ... e and the ordinary habits of life."
mechanic's lien :: n. the right of a craftsman, laborer, supplier, ar ... ll sue for the debt. See also: lien
merger :: n. 1) in corporate law, the joining together of tw ... and taking one, and wife the other.
mortgage :: n. a document in which the owner pledges his/her/i ... losure notice of default trust deed
no fault insurance :: n: a type of automobile insurance required of car ... ling lawsuits. See also: negligence
non-profit corporation :: n. an organization incorporated under state laws a ... harity corporation cy pres doctrine
no-par stock :: n. shares in a corporation which are issued withou ... re stated on the stock certificate.
paralegal :: n. a non-lawyer who performs routine tasks requiri ... h less than that for the attorneys.
partner :: n. 1) one of the co-owners and investors in a "par ... ner limited partnership partnership
partnership :: n. a business enterprise entered into for profit w ... partnership partner silent partner
preemptive right :: n. the right of a shareholder in a corporation to ... also: corporation shareholder stock
preferred stock :: n. a class of shares of stock in a corporation whi ... on stock corporation dividend stock
promissory note :: n. a written promise by a person (variously called ... lso: interest obligee obligor usury
promotional stock :: n. stock issued in a newly formed corporation and ... assets or money. See also: promoter
regulations :: n. rules and administrative codes issued by govern ... es usually have similar procedures.
securities :: n. generic term for shares of stock, bonds and deb ... ee also: bond debenture share stock
security deposit :: n. a payment required by a landlord from a tenant ... lso: landlord and tenant lease rent
self-dealing :: n. in the stock market, using secret "inside" info ... ederal Securities and Exchange Act.
share :: n. 1) a portion of a benefit from a trust, estate, ... n issue of the corporation's stock.
shareholder :: n. the owner of one or more shares of stock in a c ... : corporation shareholders' meeting
silent partner :: n. a non-legal term for an investor who puts money ... partner limited partnership partner
statute of limitations :: n. a law which sets the maximum period which one c ... ies. See also: demurrer laches toll
stock :: 1) n. inventory (goods) of a business meant for sa ... siness. See also: share shareholder
stock certificate :: n. printed document which states the name, incorpo ... . See also: corporation share stock
stock option :: n. the right to purchase stock in the future at a ... hares. See also: option share stock
transfer agent :: n. a person or company retained by a corporation t ... stockbroker. See also: share stock
treasury stock :: n. stock of a private corporation which was issued ... be entitled. See also: share stock
ultra vires :: (uhl-trah veye-rehz) adj. Latin for "beyond powers ... it is issued. See also: corporation
unissued stock :: n. a corporation's shares of stock which are autho ... poration share stock treasury stock
watered stock :: n. shares of stock of a corporation which have bee ... . See also: corporation share stock
winding up :: n. liquidating the assets of a corporation or part ... ration cy pres doctrine partnership

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - P

paid into court :: adj. referring to money deposited with the clerk o ... differences. See also: interpleader
pain and suffering :: n. the physical and mental distress suffered from ... l damages special damages suffering
palimony :: n. a substitute for alimony in cases in which the ... the relationship. See also: alimony
pander :: 1) v. to solicit customers for a prostitute. 2) n. ... ons or favors. See also: prostitute
panderer :: n. 1) a person who panders or solicits for a prost ... special interests. See also: pander
panel :: n. the list of people selected to appear for jury ... or jury duty. See also: jury venire
paper hanger :: n. slang for a person who criminally writes and ca ... ey in them. See also: forgery fraud
par :: n. 1) an equal level. 2) the face value of a stock ... common stock preferred stock stock
paralegal :: n. a non-lawyer who performs routine tasks requiri ... h less than that for the attorneys.
paramount title :: n. a right to real property which prevails over an ... n's claim of title. See also: title
parcel :: n. a defined piece of real estate, usually resulti ... See also: real estate real property
pardon :: 1) v. to use the executive power of a Governor or ... also: amnesty commutation reprieve
parens patriae :: (paa-rens pat-tree-eye) n. Latin for "father of hi ... pport custody divorce guardian ward
parent :: n. the lawful and natural father or mother of a pe ... natural parent. See also: adoption
parental neglect :: n. a crime consisting of acts or omissions of a pa ... usive or sexually predatory person.
pari delicto :: adj. equal fault. See also: in pari delicto ... al fault. See also: in pari delicto
parish :: n. 1) a geographic area served by a church (partic ... overnmental equivalent of a county.
parody :: n. the humorous use of an existing song, play, or ... l significance. See also: copyright
parol :: adj. oral. See also: parol evidence rule ... oral. See also: parol evidence rule
parol evidence rule :: n. if there is evidence in writing (such as a sign ... or contradict the written document.