Financial Terms
Simple prospect

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Definition of Simple prospect

Simple Prospect Image 1

Simple prospect

An investment opportunity where a certain initial wealth is placed at risk and only two
outcomes are possible.

Related Terms:

Preliminary prospectus

A preliminary version of a prospectus.


Formal written document to sell securities that describes the plan for a proposed business
enterprise, or the facts concerning an existing one, that an investor needs to make an informed decision.
prospectuses are used by mutual funds to describe the fund objectives, risks and other essential information.

Simple compound growth method

A method of calculating the growth rate by relating the terminal value to
the initial value and assuming a constant percentage annual rate of growth between these two values.

Simple interest

Interest calculated only on the initial investment. Related:compound interest.

Simple linear regression

A regression analysis between only two variables, one dependent and the other explanatory.

Simple linear trend model

An extrapolative statistical model that asserts that earnings have a base level and
grow at a constant amount each period.

Simple moving average

The mean, calculated at any time over a past period of fixed length.

Simple Prospect Image 2

Simple Interest

Interest paid only on the principal; calculated by multiplying the
interest rate by the principal

simple interest

a method of determining interest in which interest is earned only on the original investment (or principal) amount

simple regression

a statistical technique that uses only one independent variable to predict a dependent variable

simplex method

an iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems


Formal summary that provides information on an issue of securities.

simple interest

Interest earned only on the original investment; no interest is earned on interest.

Savings Incentive Match Plan for Employees (SIMPLE)

An IRA set up by an employer with no other retirement plan and employing fewer than 100 employees,
into which they can contribute up to $9,000 per year (as of 2004).


A securities disclosure document which provides full, true and plain disclosure of all facts that may materially affect the market price or value of a company's securities (whether issued or proposed to be issued), and is prepared in accordance with the requirements of the governing securities legislation.


A legal document that must be filed with securities regulators in order to distribute securities, including mutual funds. Mutual fund dealers are required by law to distribute this document to investors before the purchase of any units. It contains all key information, such as investment objectives and strategies, risk factors and financial highlights.







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