Definition of Offering circular:
An offering circular should not be confused with a red herring or preliminary prospectus. The red herring is issued during the IPO process and is intended to generate interest in the new issue. It lacks many of the specifics regarding the new issue. The offering circular, on the other hand, is a more complete document and should be viewed before making a final decision about an investment.
Alternative term for prospectus.
An offering circular is a type of prospectus provided for a new security listing. It is delivered to individuals and brokerage houses who are interested in potentially purchasing the newly issued securities. It is often slightly abbreviated from the final, long-form prospectus, but is still required to contain specific information.
How to use Offering circular in a sentence?
- It is a condensed prospectus that must nonetheless include accurate data related to the issuer's finances, risk factors, usage of the proceeds from the issue, and other pertinent information.
- An offering circular is a formal written offer to sell newly issued securities that provides essential information to prospective investors.
- The offering circular, while abbreviated, should not be confused with the more informal "red herring" document, which is intended as a marketing device rather than a regulatory document.
Meaning of Offering circular & Offering circular Definition