prospectus

noun

pro·​spec·​tus prə-ˈspek-təs How to pronounce prospectus (audio)
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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Latest in Finance 3 hours ago Finance - A.I. Goldman Sachs CEO says that AI can draft 95% of an IPO prospectus in minutes BYPaolo Confino January 17, 2025 3 hours ago Finance - JPMorgan Chase Inside JPMorgan, employee backlash over 5 day RTO mandate gains steam. Luisa Beltran, Fortune, 17 Jan. 2025 This point does not tie with the later case records and prospectus disclosures. Ann Rutledge, Forbes, 11 Jan. 2025 The Celtics grossed $493 million in revenue during the 2023-24 season, according to someone who had reviewed the sales prospectus document from BDT & MSD. Kurt Badenhausen, Sportico.com, 18 Dec. 2024 Two of Mao’s sisters and several other relatives also each hold a smaller stake that could be worth another $900 million in total, the company’s prospectus showed. Marco Quiroz-Gutierrez, Fortune Asia, 10 Dec. 2024 See all Example Sentences for prospectus 

Word History

Etymology

Latin, prospect

First Known Use

1765, in the meaning defined at sense 1

Time Traveler
The first known use of prospectus was in 1765

Dictionary Entries Near prospectus

Cite this Entry

“Prospectus.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prospectus. Accessed 27 Jan. 2025.

Kids Definition

prospectus

noun
pro·​spec·​tus prə-ˈspek-təs How to pronounce prospectus (audio)
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 How to pronounce prospectus (audio)
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.”

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