- Financial dictionary
Prospectus
Prospectus
A prospectus is a document that provides detailed information about an investment product, such as stocks, bonds, or investment funds, to inform potential investors and assist them in making decisions. It includes data on the investment strategy, risks, costs, historical performance, and other key aspects of the product. The prospectus is important for ensuring transparency and providing complete and accurate information so that investors can make informed decisions.
Related terms
| Term | Definition |
|---|---|
| Publicly traded company | A publicly traded company is a company whose shares are listed on a public exchange and traded on the open market. These companies must comply with strict regulatory requirements regarding transparency, governance, and regular financial reporting. Public trading allows the company to raise capital from a broad range of investors, providing liquidity, meaning shares can be easily bought and sold on the exchange. Public trading also increases the company's visibility and enhances its prestige. However, it also comes with greater demands for information disclosure and stringent oversight mechanisms. |
| Qualified investor | A qualified investor is an individual or institution that meets specific financial or professional criteria, allowing them to invest in riskier or specialized investment products such as hedge funds, private equity, and certain real estate funds. These criteria typically include the size of the investor's assets, income, and investment experience. |
| Qualified investor fund | A qualified investor fund is an investment fund designed for investors who meet certain criteria and have sufficient financial resources and experience to handle a higher level of investment risk. These funds are often less regulated than regular investment funds, allowing for greater flexibility in terms of investment strategies and opportunities. Qualified investor funds can invest in a variety of assets, including riskier or less liquid investments. These funds are typically managed by professionals and may offer higher potential returns, but also come with higher risks. |
| Real Estate Fund | A Real Estate Fund is an investment fund that focuses on investments in real estate and related assets. These funds can invest in various types of properties, such as office buildings, commercial spaces, residential complexes, or industrial properties. Real estate funds allow investors to gain exposure to the real estate market without the need for direct ownership or property management. These funds can generate income from rental payments as well as from the appreciation of property values. They can be open or closed-ended, with open-ended funds allowing for regular buying and selling of shares, while closed-ended funds have a limited number of shares and do not allow regular buying or selling. |
| Reference currency | A reference currency is a currency used as a basis for measuring the value or performance of other currencies or financial instruments. In international trade and finance, it is often used as a standard for comparison and conversion of values. For example, in many financial transactions and calculations, such as exchange rates or price indexes, the US dollar, euro, or another stable currency may be used as the reference currency. The reference currency provides a foundation for determining relative value and facilitates international trade and investment. |