A company’s prospectus represents a formal written document to issue securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one. An investor should review and be familiar with these details in order to make an informed investment decision. Prospectuses are used by companies issuing shares, as well as mutual funds to describe objectives, risks, opportunities and financial forecasts.
A prospectus issued in Jamaica is reviewed by the Companies Office of Jamaica (COJ), the Financial Services Commission (FSC) and the Jamaica Stock Exchange (JSE) to ensure that the relevant information is contained in the document. The Companies Office of Jamaica must approve the prospectus while the FSC must provide the issuer with a no objection letter before the prospectus is published.
The JSE has up to 5 years’ of prospectuses on its website for general viewing.
There are four types of prospectuses, namely the: Main, Junior, Bond and US Denominated.