What is Prospectus?

Legal Definition
A prospectus, in finance, is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company's business, financial statements, biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information. In the context of an individual securities offering, such as an initial public offering, a prospectus is distributed by underwriters or brokerages to potential investors.
-- Wikipedia
Legal Definition
A formal written document that accompanies a new offering of a corporate security, meant to provide information to potential buyers of that security. It contains detailed information on the business' history, financial state, current business plans, the names of its directors and officers as well as any pending litigation it is involved in. The prospectus is usually an abridged version of the business' registration statement filed with the Securities and Exchange Commission (SEC).
See also
Legal Definition
A document published by a company or corporation, 'or by persons acting as its agents or assignees, setting forth the nature and objects of an issue of shares, debentures or other securities created by the company or corporation, and inviting the public to subscribe to the issue. A prospectus is also usually published on the issue, in England, of bonds or other securities by a foreign state or corporation. Sweet. In the civil law. Prospect; the view of external objects. Dig. 8, 2, 3, 15.
-- Black's Law Dictionary