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Green Sheet

A green sheet is an internal sales document used by brokerage firms to provide information about a new security offering to their sales force. It includes details such as the offering’s terms, risks, potential returns, and selling points. Green sheets help brokers understand the investment’s key features, enabling them to effectively market the security to potential investors. They are not distributed to the public and are primarily intended for internal use by financial professionals.

Example

Before launching an initial public offering (IPO), a brokerage firm issues a green sheet to its sales team, highlighting the key aspects of the company going public, including financial performance and investment risks.

Key points

• Internal document used by brokerage firms to brief sales teams on new security offerings.

• Includes details about the investment’s terms, risks, and selling points.

• Used to educate brokers on how to market the security to potential investors.

Quick Answers to Curious Questions

A green sheet provides brokers with essential information about a new security offering, helping them understand its features and risks to better advise clients.

Green sheets are for internal use only, accessible to brokers and sales teams within the firm but not distributed to the general public.

While prospectuses are public documents that disclose detailed information to investors, green sheets are internal guides used by brokers to market the securities.