Capital markets glossary

Prospectus

What is a prospectus?

A prospectus is a regulated disclosure document required in certain cases when securities are offered to the public or admitted to trading on a regulated market.

01

When the question arises

The EU Prospectus Regulation contains main rules, exemptions and several document formats. The answer does not depend solely on the amount raised. Target investors, offer size, security type, existing admission and the intended market all matter. The EU Listing Act has changed formats and thresholds in stages, making a current legal analysis essential at project launch.

In Sweden, the Financial Supervisory Authority reviews and approves prospectuses. Approval does not mean that the authority recommends the investment or guarantees every commercial statement. The issuer and responsible persons still need to verify the information. A prospectus typically covers the business, risk factors, financial information, owners, management, the offer and use of proceeds.

02

A verification project

Treat the prospectus as a cross-functional project. Legal, accounting, tax, business narrative and transaction terms must use the same source material. Verification links important statements to agreements, reports or other evidence and records accountable reviewers. The timetable must allow for repeated drafts, board review, translation, design, technical filing and regulator comments. A supplement may be required if a significant new factor arises before the relevant offer or admission period ends.

Primary source

Rules change. Use the current official source before making a decision.

Swedish FSA – prospectus guidance

This explanation is general and is not legal, financial or investment advice. The application of a term depends on the instrument, marketplace, current rules and the facts of the individual matter.

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