A offering memorandum is a good right that sets the objectives, risks and conditions of an investment related to a private placement. This document contains elements such as the annual accounts of a company, management biographies, a detailed description of the activity and much more. The offer memorandum communicates to potential investors everything they need to know about the company: the conditions of the investment, the nature of the activity and the potential risk of the investment. The document almost always contains a subscription contract which constitutes a legal contract between the issuing entity and the investor. While an offer memorandum is used in connection with a private placement, a summary prospectus is the disclosure document made available to investors of the investment companies before or at the time of the public sale. Below you will find a part of the table of contents prospectus that contains basic information about the offer. We can see the information listed below: A prospectus is a formal document requested and submitted to the Securities and Exchange Commission (SEC) that contains details about an investment offer to the public. A prospectus is submitted for offers of shares, bonds and investment funds. The document can help investors make more informed investment decisions, as it contains a lot of relevant information about investment security. In the case of investment funds, a prospectus contains details about the objectives, investment strategies, risks, performance, distribution policies, fees, expenses and management of the funds. Since the fees levied by investment funds wear out investors` returns, the fees are shown in a table at the beginning of the prospectus.
The costs of buying, selling and moving between funds are also included, making it easier to compare the costs of different investment funds. A prospectus contains some of the following information: risks are usually disclosed early in the prospectus and described in more detail afterwards. The age of the company, management experience, management involvement in the business and capitalization of the issuer of shares are also described. . . .