What document provides information to investors regarding a bond issue?

The appropriate document that provides comprehensive information to investors regarding a bond issue is known as the Official Statement. This document serves a crucial function as it contains detailed information about the bonds being offered, including the purpose of the bond issue, the terms and conditions, the financial status of the issuing entity, and any relevant risks associated with the investment.

The Official Statement is the final offering document and is provided to potential investors during the bond sale process. It ensures that investors have access to all necessary information to make informed investment decisions. It typically includes a summary of the bond’s terms, the project or purpose for which the bonds are issued, as well as financial statements and other key data that might affect the creditworthiness of the issuer.

While other documents such as the Preliminary Official Statement (POS) are interim documents provided before the sale, they do not contain the final terms of the offering. The POS is often used to gauge interest from potential investors but lacks the finalized details that investors need. Similarly, the Prospectus and Offering Circular serve similar roles in different contexts but are not exclusively used for municipal bond offerings in the same way the Official Statement is.