IPOs - Speak The Basics (Very Good Reading) (10)

A look at the prospectus

All-hands

Adequate research is, without a doubt, the most effective way to identify and stay away from the IPO disasters waiting to happen.

The prospectus, which contains nearly all aspects of a company's business and game plan, is the first place any investor interested in purchasing a new issue should look.


Finding an online prospectus is a snap

Getting a prospectus is easy.

If you're reading this online, you should be able to electronically download a prospectus without any problem.

Prospectuses for all US companies are available for free from the Securities and Exchange Commission's Web site, FreeEDGAR.com, or on a delayed basis from EDGAR Online.