why is a prospectus useful for investors 
an sec required prospectus provides important details about an investment offering to investors it provides information to the public regarding investment risk and consolidates valuable information about the investment as well as the company being invested in knowing the type and amount of risk involved is an important consideration for investors such that those details are typically disclosed early in the prospectus and later in detail the financial condition of the company behind the investment is also important since investors want to ensure the company is financially viable enough to honor its commitments 