A company’s prospectus represents a formal written document to issue securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one. An investor should review and be familiar with these details in order to make an informed investment decision. Prospectuses are used by companies issuing shares, as well as mutual funds to describe objectives, risks, opportunities and financial forecasts.
A prospectus issued in Jamaica has to be approved by the Financial Services Commission and the Companies Office of Jamaica and reviewed by the JSE to ensure that the information required for listing is contained in the prospectus. The JSE has up to 5 years’ of prospectuses on its website for general viewing.