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Prospect |
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ProspectA person who is not currently a client or customer who may (or may not) purchase a product from the seller. If such a person subsequently does buy, he/she becomes a client.Similar MatchesPart B prospectusPart B prospectusSee: Statement of Additional Information ProspectusProspectusThe document which companies have to publish before issuing new shares to the public. The prospectus sets out the company's business, its financial history, performance, capital structure and future prospects, and the content has to comply with Stock Exchange rules. ProspectusProspectusFormal written document to sell securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one, that an investor needs to make an informed decision. Prospectuses are used by mutual funds to describe fund objectives, risks, and other essential information. Simple prospectSimple prospectAn investment opportunity in which only two outcomes are possible. Pathfinder prospectusPathfinder prospectusA prospectus published by a company prior to flotation on the stock market which contains information about the company and the offer, but which leaves out details of the offer price, prospective yield and P/E ratio. The missing information is filled in just before the full prospectus is published.Companies send out pathfinder prospectuses to potential investors to build interest in the flotation in advance. The reason they leave the price blank is that they want as little time to elapse between announcement of the price and the closing date for applications - the nightmare scenario is to fix an offer price of, say 100p, and then watch the market collapse over the next few weeks, guaranteeing that the issue will flop. (This happened in 1987 when the government sold its £7.2 billion stake in BP right at the time of the stock market crash, and underwriters had to pick up massive tranches of unsubscribed stock at above-market prices). Further SuggestionsPreliminary prospectusProspective analysis |
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