10 What is a "prospectus"?
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This article is from the FAQ, by with numerous contributions by others.
10 What is a "prospectus"?
It is a document which an open-end fund, or newly issued closed-end
fund, is required to provide to investors. Funds say that investors
should read it carefully before investing or sending money. A
prospectus contains descriptions of:
(1) fees, in a standardized format
(2) investment objective
(3) some financial data
(4) investment methods, risk description
(5) investment manager and compensation
(6) how to buy shares
(7) how to sell shares, including signature guarantee requirements
(8) dividend and capital gain distributions
(9) other services
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