Good prospectus examples include all the necessary information that an investor needs to know about an organization that is selling securities. Key facts should include revenue data, outstanding loans and other risks potential investors face in the market.
A prospectus can serve as a sales tool to help influence investors to put their funds behind the company. It can also serve as a legal document, being evidence that investors knew of before they decided to invest in the organization. Laws at the federal and state level mandate when a company must issue a prospectus, as well as the information to include within it.