Difference between Brochure and Prospectus

Key Difference: Brochures and Pamphlets are both synonyms. A brochure is a small booklet or pamphlet used to inform people about the new products, which a company or an organization has introduced. On the other hand, a prospectus is a printed advertisement which offers a variety of options and a plan of action.

Brochure and prospectus are two words that often create confusion and at many times people use them interchangeably. However, they are somewhat different to each other.

A Brochure is also specified as a pamphlet. Brochure is a small booklet usually used to give information about holidays or products. It is a form of a paper advertisement and distributed or posted, directly or via mail in a public place. Brochure is a type of a small magazine that contains pictures and information on a product or a company.

It is mostly of a single-sheet (bi-fold) or three sheets (tri-fold), which can be easily spread over the different places. They may advertise new products, locations, shops, events, hotels, etc. It should be very attractive so that people at least have a glance over it. Nowadays, there are varieties of patterns and designs in brochures. They can be a magazine style brochure, a 3-folded brochure or a postcard brochure.

A Prospectus is a booklet where an advertisement or certain information is given that describes the particular thing. A prospectus is a document giving details of a college, school or business and its activities.

According to Dictionary.com, a prospectus is a “document describing the major features of a proposed literary work, project, business venture, etc., in enough detail so that prospective investors, participants, or buyers may evaluate it”.

There are different types of prospectus:

Abridge Prospectus: Abridged Prospectus is a shorter description of the prospectus and contains all the prominent features of a Prospectus.

Red Herring Prospectus: in which shares are offered to the public in a price range; shareholders can apply for the shares at the price suitable to them; all the information  is mentioned, however the price of the share is subject to change.

Elements of a Prospectus are:

(a) There must be an invitation to the public.

(b) The invitation must be made by or on behalf of the company.

(c) The invitation must to subscribe or purchase.

(d) The invitation must relate to securities.

Generally, both the words are used together, as most of the time people don’t feel a difference between them. They can be used for the same purpose. Some of the examples are listed below:

  • Get some brochures from the travel agent.
  • Download our full prospectus for the English language study courses.
  • Search, read and order holiday brochures by post or email.
  • Don't buy the new stock offering until you read the prospectus carefully.

Image Courtesy: boxshot3d.com, theprospectus.org

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