What is one purpose of the Prospectus Directive?

The purpose of the Prospectus Directive is fundamentally to harmonize rules throughout the European Union. This directive aims to create a consistent framework for the preparation and presentation of prospectuses, which are vital documents for investors when considering investments in securities. By standardizing requirements, the directive facilitates easier access to investment opportunities across member states, thereby improving investor protection and promoting market efficiency.

Harmonization helps ensure that investors receive the same level of information and protection regardless of where an issuer is based within the EU. This not only simplifies the process for issuers when they want to raise funds in different countries but also enhances market confidence by providing uniform disclosures that investors can rely upon.

The other options do not align with the main objective of the Prospectus Directive. It does not aim to increase costs for issuers or limit their ability to passport (which is the ability to market securities across EU countries based on home country compliance). Additionally, it does not seek to promote speculative investing, as its core focus is on safeguarding investors through transparency rather than encouraging risky investment behaviors.