Introduction to The Stock Prospectus

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You can learn a lot about an investment by reading its prospectus: risk factors, dividend policy, and dilution information, to start.

What you will learn

  • What Is a Stock Prospectus?
  • Basic Information Found in a Stock Prospectus
  • Reading a Stock Prospectus

What do you know?

Introduction to The Stock Prospectus

Published by companies that are making new issues of stock, the prospectus is the most comprehensive source of information for potential shareholders about the company and its stock offering. As an educated investor you need to know what stock prospectuses are, why companies issue them, what information you can find in them, and things to watch for while you are reading them. Prospectuses are not always the easiest publications to read, but with some help, you can get a good sense of what they are telling you about a potential investment.