prospectus

noun

pro·​spec·​tus prə-ˈspek-təs 

prä-

plural prospectuses

1

: a preliminary printed statement that describes an enterprise (such as a business or publication) and that is distributed to prospective buyers, investors, or participants

2

: something (such as a statement or situation) that forecasts the course or nature of something

Did you know?

Prospectus Is a Word for the Forward-Thinking

Like prospect, prospectus looks forward. Thus, a prospectus originally outlined something that didn't yet exist, describing what it would become. This might even be a book; the great dictionary of Noah Webster, like that of Samuel Johnson, was first announced in the form of a prospectus, so that well-to-do people might actually subscribe to it—that is, pay for it in advance so that Webster would have money to live on while writing it. Soon, prospectus was being used to mean a description of a private school or college, intended to attract new students. Today the word very often means a description of a stock offering or mutual fund, whether new or not.

Examples of prospectus in a Sentence

Recent Examples on the Web

The prospectus outlines the typical credit risks and also specific hazards including earthquakes in California, typhoons in Japan and European windstorms. —Chris Dobstaff, Forbes, 31 Oct. 2024

When Reddit went public in March, Altman ended up having even more shares than Huffman, who was the company’s CEO, according to Reddit’s IPO prospectus. —Paolo Confino, Fortune, 30 Oct. 2024

Today, the chain is the largest of its kind in Malaysia, holding a 40% share in the mini-market segment and nearly 12% among all grocery retailers, according to the IPO prospectus. —Ram Anand, Fortune Asia, 9 Sep. 2024

His payments on the ground lease are set to skyrocket in 2033, escalating to at least 6% of the value of the land, according to a lending prospectus. —Zach Everson, Forbes, 6 Oct. 2024

Word History

Etymology

Latin, prospect

First Known Use

1765, in the meaning defined at sense 1

Kids Definition

prospectus

noun

pro·​spec·​tus prə-ˈspek-təs 

prä-

plural prospectuses

: a printed statement that describes something (as a new business) and is sent out to people who may want to take part (as by investing)

Legal Definition

prospectus

noun

pro·​spec·​tus prə-ˈspek-təs 

plural prospectuses

-tə-səz

: a preliminary printed statement describing a business or other enterprise and distributed to prospective buyers, investors, or participants

specifically : a description of a new security issue supplied to prospective purchasers and providing a disclosure of detailed information concerning the company's business and financial standing

Note: Under the Securities Act of 1933, the prospectus is part of the registration statement that must be filed with the Securities and Exchange Commission before a security may be offered or sold to the public. The Securities Act defines prospectus broadly as “any prospectus, notice, circular, advertisement, letter, or communication, written or by radio or television, which offers any security for sale or confirms the sale of any security.”