Stocks Beginner: The Stock Prospectus

Introduction to The Stock Prospectus What Is a Stock Prospectus? Basic Information Found in a Stock Prospectus Reading a Stock Prospectus Summary of The Stock Prospectus
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Introduction to The Stock Prospectus

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You can learn a lot about a potential investment by reading its company prospectus. Learn in this tutorial what you can gain from reading a prospectus. Risk factors, dividend policy, and dilution information are some of what you will learn about in a typical prospectus. The tutorial closes with a look at how you can use this information to help you evaluate a stock.

What you will learn

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

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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.