"Pre-release" prospectus offering. An announcement of a future issuance of securities, given restricted circulation during the waiting period of 20 days or other specified period between the filing of a registration statement with the SEC and the effective date of the statement. A red herring is not an offer to sell or the solicitation of an offer to buy.
A prelimary prospectus distributed to prospective investors in a new issue of securities.
A preliminary copy of the prospectus used for due diligence purposes prior to the effective date of the offering. The red herring, or preliminary prospectus has red printing on its cover indicating that it is not a final prospectus. The red herring is also utilized to interest potential investors and brokerage firms with participating in the offering of securities.
a first draft of a prospectus; must be clearly marked to indicate that parts may be changed in the final prospectus; "because some portions of the cover page are printed in red ink a preliminary prospectus is sometimes called a red herring"
a distraction, something that takes attention away from the real issue
a false issue which leads away from the real issue
a smelly fish that would distract even a bloodhound
This is another name for the preliminary prospectus. This is the offering document printed by the issuer containing a description of the business, discussion of strategy, presentation of historical financial statements, explanation of recent financial results, management and their backgrounds and ownership.
This refers to the preliminary prospectus because of the printed red disclaimer on the left side of the prospectus.
A preliminary prospectus that provides information about a new issue, prior to the first public sale of a security. It provides financial details about the issue, but does not contain all the information that is required to appear in the final prospectus. In addition, the information may change between the time that the red herring is issued and the final prospectus is released.
When a security is offered to the public for the first time in U.S., the underwriter prepares a preliminary prospectus, called a red herring. While the name may refer to the parts of the document printed in red ink, the implication is that the document is an attempt to present the company in the best possible light. The reference is to the rather distinctive odor of the fish in question, which fleeing fugitives sometimes used to throw bloodhounds off their scent. Although the preliminary prospectus contains important information about the company, its offerings, financial projections, and investment risk, it is frequently revised before the final version is issued.
An American preliminary prospectus, containing most disclosure except the offering price and details of the syndication. So-called because of the red line required to be on the bottom of the cover page.
a proposed prospectus that has not been approved by the Securities and Exchange Commission (SEC) or state securities commission.
The Preliminary Prospectus. Called "red herring" because of the red print identifying on its cover and because the information contained within might be "too good to be true."
A preliminary prospectus giving the advance details of an expected offering of corporate securities, subject to amendment, with the sale contingent upon clearance by the SEC. So called because it contains a disclaimer printed in red.
The common name for a preliminary prospectus, due to the red SEC required legend on the cover. (See Prospectus)
This is the term of art for the preliminary prospectus. It gets its name from the printed red disclaimer on the left side of the prospectus.
The prospectus that is sent to prospective investors before the actual public offering of a company's stock. It is called a red herring because it contains a legend, printed in red, that advises investors of its preliminary nature.
The initial document published by an underwriter of a new issue of stock to be given to prospective investors. It is understood that the document will be modified significantly before the final prospectus is published. Its name comes from the warning, printed in red, that information in the document is still being reviewed by the SEC and is subject to change. Also called preliminary prospectus.
A registration statement filed with but not yet approved by the Securities and Exchange Commission (SEC). (See: Prospectus)
See: Prospectus. REFINANCING: Same as refunding. New securities are sold by a company and the money is used to retire existing securities. The object may be to save interest costs, extend the maturity of the loan, or both.
The preliminary prospectus distributed to the underwriting syndicate. Its cover includes a legend in red ink that the registration statement has not yet become effective.
The preliminary prospectus. The name comes from the advisory that is printed on the face of the prospectus in red ink.
A preliminary prospectus containing information required by the SEC. It excludes the offering price and the coupon of the new issue.
A preliminary prospectus for securities to be offered publicly by a corporation or underwriter. It is the only form of written communication allowed between a broker and potential purchaser before the effective date. The Securities Act of 1933 requires a red-lettered caveat on the front page; hence, the derivation of the name.
The slang term for a pathfinder prospectus prepared for a US issue and used in pre-marketing. It contains all the details of the issue except the price. The front page is covered in red ink, warning potential investors of all sorts of dire consequences if they were to invest in this company.
A preliminary offering statement, subject to final change and update upon completion of sale of bonds.
A preliminary registration statement that must be filed with the SEC describing a new issue of stock (IPO) and the prospects of the issuing company.
Slang for a proposed prospectus, not yet approved by the Securities and Exchange Commission (SEC) or State Securities Commission, which gives information about the important aspects of a new issue of securities without giving selling price information or date of the offering. The term is derived from the fact that there is a statement, in red ink, which advises the reader that it is not an official offer to sell the securities. Only after full approval, can the security be offered for sale.
registration Registration Statement
A preliminary prospectus, so-called because certain information is printed in red ink around the border of the front page. It does not contain all the information found in the final prospectus. Its purpose is to ascertain the extent of public interest in an issue while it is being reviewed by a securities commission.
The preliminary prospectus for an initial public offering. Before the registration statement becomes effective, underwriters may use the preliminary prospectus to market the offering. The preliminary prospectus, however, must bear a legend printed in red ink stating that the offering has been filed but is not yet effective.