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Tue 30 Aug, 2005 08:04 pm
Okay, a friend and I are considering starting a finance club at our high school, but we've been told we need to create a Prospectus. Although we've got a vague idea as to what a prospectus is, can someone help me out by telling me what we'll need to include?
Thanks
Usually lawyers pull together prospectus. I work in the mutual fund area and review prospectus for financial numbers all the time. As I am not a lawyer, I cannot tell you what needs to be included in a prospectus, however, I can tell you typically what is found in the prospectus.
Summary - objective, strategies of the investments, risks associated with the investments, limits and types of investments, history of performance - if has been in existence, a fee table showing any anticipated fees - break out any affiliated fees.
Investment details - what type of things investing in - any restrictions, how you are valuing.
Set up of ownership - how you buy/sell into, how/when distributions are made/determined, tax information
If any formal fee structures set up - is some one getting paid fees to determine what to buy and sell for example.
Again this is just general information, typically since a prospectus is considered a legal document, I would have a lawyer familiar with this sort of thing to draw it up, if possible.