Prospectus
Formal document issued by company offering securities.
Real World
When Deliveroo floated on the London Stock Exchange in 2021, it published a detailed prospectus warning investors of risks including driver classification disputes — many investors heeded these warnings and the share price fell sharply on day one.
Exam Focus
If asked to 'assess' a flotation, reference the prospectus as a legal requirement that increases transparency but also reveals risk.
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