What Is the Prospectus That a Company Issues Prior to an Initial

question 64

Essay

What is the prospectus that a company issues prior to an initial public offering? Why is it important?

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Definitions:

Reconstruction Bias

a type of cognitive bias that involves memory errors in which individuals may add or omit details in their recollection of events.

Overconfidence Bias

The tendency to hold a subjective belief unreasonably confidently, making someone believe their ability, or the accuracy of their information, is higher than it actually is.

Confirmation Bias

The bias towards finding, interpreting, selecting, and recollecting evidence in ways that validate one's prior beliefs or notions.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "I-knew-it-all-along" effect.