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Simple English definitions for legal terms
stickering
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A quick definition of stickering:
Term: Stickering
Definition: Stickering is a process used in the securities industry to update a prospectus. This is done by adding stickers that contain new information to the existing prospectus. These stickers help investors stay informed about any changes that have been made to the investment opportunity.
Think of it like adding a new sticker to your favorite book to update it with new information. Stickering helps keep investors up-to-date and informed about their investments.
A more thorough explanation:
Definition: Stickering is a process in the securities industry where a prospectus is updated by adding stickers that contain new information.
Example: Let's say a company wants to issue new shares of stock. They would need to create a prospectus that outlines important information about the company and the new shares. However, if something changes after the prospectus is printed, like the price of the shares or the number of shares being offered, the prospectus needs to be updated. Instead of printing a whole new prospectus, the company can use stickering to add the new information. They would print stickers with the updated information and stick them onto the existing prospectus.
Explanation: Stickering is a cost-effective way for companies to update their prospectuses without having to print entirely new documents. By adding stickers with the new information, they can ensure that investors have the most up-to-date information before making investment decisions.