a formal written offer to sell securities (filed with the SEC) that sets forth a plan for a (proposed) business enterprise
"a prospectus should contain the facts that an investor needs to make an informed decision"
a catalog listing the courses offered by a college or university
"The prospective student carefully reviewed the prospectus to see which science courses were available next semester."
A document, distributed to prospective members, investors, buyers, or participants, which describes an institution (such as a university), a publication, or a business and what it has to offer.
"The new prospectus outlined the curriculum and campus facilities available to potential students."
In plain English: A prospectus is an official document that explains what you are buying and any risks involved before you make a purchase or investment.
"The new student read the prospectus to learn about the courses offered at the university."
Usage: A prospectus is specifically the official document that outlines details about an investment opportunity, educational program, or corporate offering for potential buyers. Unlike general promotional materials, it must provide factual information and financial data to help investors make informed decisions before committing funds.
The word entered English directly from French, where it originally described a printed document outlining the details of an investment or publication. It shares its Latin root with "prospect," but developed into a specific term for promotional literature rather than just a view forward.