Definitions for "Red herring prospectus"
Industry jargon for a preliminary prospectus issued by underwriters or issuers to gauge interest in a prospective offering. It receives its name from the warning, printed in red, that information in the document is incomplete or subject to change before the issue. (See prospectus, underwriters)
In securities law, a PRELIMINARY PROSPECTUS that has not yet been approved by the SEC or state securities commissioners. A red border on its front notifies interested parties that the securities offering is not yet approved for final distribution. It is also used as a type of advertising device to encourage securities sales. See also PRELIMINARY PROSPECTUS. (The red ink requirement was eliminated by the SEC in 1996. See SEC Release No. 33-7300.)
Investment/finance industry jargon for a preliminary prospectus issued to gauge interest in a prospective security offering.