Prospectus

Formal written document to sell securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one, that an investor needs to make an informed decision. Prospectuses are used by mutual funds to describe the fund objectives, risks and other essential information.

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Preliminary prospectus
A preliminary version of a prospectus.

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Exercise price

Price at which the holder of an option can buy (call option) or sell (put option) the underlying stock. Also referred to as strike price.


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