A prospectus are used by the government company for issuing the share of company to the public. In the prospectus all the company details are given like an name of company or what is the motive of company and what is its future plan.
A prospectus is a formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public. A prospectus should contain the facts that an investor needs to make an informed investment decision.