A prospectus is a formal document provided by a company when it is launching an Initial Public Offering (IPO). It contains crucial information about the company, including its financials, business operations, risks, and the details of the offering. It is designed to help potential investors make informed decisions about whether to invest in the company’s shares.

The prospectus is critical because it provides transparency, allowing investors to assess the company’s value, risks, and growth potential. It also ensures that the company meets regulatory requirements for offering securities to the public.

A well-designed prospectus creates a professional and trustworthy first impression. Clear presentation of financials, business operations, and risks helps investors understand the opportunity better, which can boost confidence in the IPO.

Yes, the prospectus can be modified during the review process. If new information arises or changes occur within the company, adjustments may need to be made before it is finalized and filed with regulatory bodies.

Yes, once the prospectus is filed with the relevant regulatory bodies (e.g., the Securities and Exchange Commission), it becomes publicly available for investors to access and review.