What is a document issued to potential buyers outlining the financial condition of a company?

The correct choice is a prospectus, as it serves a specific purpose in the context of securities offerings. A prospectus is a formal document that a company provides to potential investors, detailing important information about the investment offering. It includes the company's financial condition, risks associated with the investment, and the potential for returns. The primary aim of a prospectus is to help investors make informed decisions before purchasing securities, ensuring transparency and compliance with regulatory requirements.

In contrast, while a balance sheet is a key financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time, it does not serve the same comprehensive purpose for potential investors as a prospectus. A quarterly report provides performance updates for a company over a three-month period, but it is not specifically tailored to outline the financial condition related to a new investment offering. Similarly, a financial statement is a broader term that encompasses various reports but does not specifically indicate the function of outlining an investment opportunity to potential buyers. Thus, the prospectus is the appropriate document that fulfills this role.