What Is An Official Statement?

An official statement is a document prepared by or on behalf of a state or local government in connection with a new issue of municipal securities. In some respects, an official statement is comparable to a prospectus for a corporate equity or debt offering.

What is a preliminary official statement?

PRELIMINARY OFFICIAL STATEMENT (POS) A version of the official statement prepared by or for an issuer of municipal securities for potential customers prior to the availability of the final official statement.

what is a bond prospectus? A bond prospectus is an offering statement with information about the bond and the entity issuing it. Investors use a prospectus to help make investment decisions.

when must underwriters provide the final official statement to the MSRB?

Underwriters are also required to submit to the MSRB copies of any amendments to the official statement up until the 25th day after the settlement of the underwriting. However, there is no explicit obligation on the part of the issuer to update the official statement.

What is the purpose of a prospectus?

A prospectus, in finance, is a disclosure document that describes a financial security for potential buyers. In the context of an individual securities offering, such as an initial public offering, a prospectus is distributed by underwriters or brokerages to potential investors.

What are the key features of bonds?

Characteristics of bonds Face value. Corporate bonds normally have a par value of $1,000, but this amount can be much greater for government bonds. Interest. Most bonds pay interest every 6 months, but it’s possible for them to pay monthly, quarterly or annually. Coupon or interest rate. Maturity. Issuers. Rating agencies. Tools and tips.

What is a bond indenture?

Definition: A bond indenture is a legal document or contract between the bond issuer and the bondholder that records the obligations of the bond issuer and benefits owed to the bondholder.

How do you find a prospectus?

The best resource for finding the prospectus for a company is EDGAR, a database maintained by the federal Securities and Exchange Commission. The best way to search is by ticker symbol, but you can also search by company or fund name. Go to the Edgar website. See References for a link.

How do you read a prospectus?

How to Read a Mutual Fund Prospectus Start with the “investment strategy” section to see how the manager intends to invest your money. A prospectus can give a manager a lot of latitude. Fees are often confusing. Look at the fund’s worst year or quarter. Consider the fund’s portfolio turnover, which shows how often the manager buys and sells securities.

What are the main features of a corporate bond that would be listed in the indenture?

Between bond issuers and bondholders, an indenture is a legal and binding contract specifying all the important features of a bond, such as its maturity date, the timing of interest payments, method of interest calculation and callable or convertible features, if applicable.

What is a prospectus of a company?

Sec. 2(36) of the Companies Act describes a prospectus as “any document issued as a prospectus and includes any notice, circular, advertisement or other document inviting deposits from the public or inviting offers from the public for the subscription or purchase of any share in, or debentures of a body corporate.”

How are bonds used in finance?

Bonds are loans, or IOUs, but you serve as the bank. You loan your money to a company, a city, the government – and they promise to pay you back in full, with regular interest payments. A city may sell bonds to raise money to build a bridge, while the federal government issues bonds to finance its spiraling debts.

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