What is a prospectus?

A prospectus is a legal document that provides detailed information about an investment opportunity. It includes a description of the risk involved in the investment, the expected returns, and other financial and legal information that potential investors need to make an informed decision. In North Carolina, the broker-dealer must provide a prospectus for any investment it offers to potential investors. The prospectus must include the type of investment, the expected return, the fees and commissions, and any other information that an investor needs to understand the terms of the investment. The prospectus must also include information about the broker-dealer and their personnel, as well as any relevant regulatory information. The purpose of the prospectus is to inform potential investors of the risks and potential returns of an investment before they decide to invest their money. By having a prospectus, investors are better informed about the investments they are making, and can make more informed decisions.

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