A more thorough explanation:

A term sheet is a document that provides important information to investors about a securities offering. It includes details that are not disclosed in the prospectus or confirmation. The term sheet may also be referred to as a letter of intent or abbreviated term sheet.

For example, a company may issue a term sheet to potential investors outlining the terms of a new stock offering. The term sheet would include information such as the number of shares being offered, the price per share, and any special conditions or restrictions that apply to the offering.

The purpose of a term sheet is to provide investors with enough information to make an informed decision about whether to invest in the securities being offered. By disclosing all material information, the issuer can avoid any legal issues that may arise from incomplete or inaccurate disclosures.