red herring financial definition of red herring. red herring finance term by the Free Online Dictionary.

Red herring

A preliminary prospectus providing information required by the SEC. It excludes the offering price and the coupon of the new issue.

Preliminary Prospectus

The first prospectus distributed prior to a new issue of a security. The first prospectus contains information such as the terms of issue, the size of issue, and other, relevant data about the security. Importantly, however, it does not contain the new issue's price. Because the preliminary prospectus is subject to change and because the SEC requires part of it to be printed to red ink, it is informally called a red herring.

red herring

A prospectus that is given to potential investors in a new security issue before the selling price has been set and before the issuer's registration statement has been approved for accuracy and completeness by the SEC. This document, which provides details of the issue and facts concerning the issuer, is so named because of a statement on it, printed in red, that the issue has not yet been approved by the SEC. Also called preliminary prospectus.

Red herring. When a security is offered to the public for the first time, 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 has been written to present the company in the best possible light. The reference is to the rather distinctive odor of the fish in question, which, the story goes, 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 customarily revised before the final version is issued.

red herring

A proposed prospectus that has been filed with the Securities and Exchange Commission (SEC) but not approved by it.Its purpose is to determine the extent of public interest in an issue while it is being reviewed by the SEC. Called a red herring because of the red ink around the border of the front page.

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Preliminary Prospectus prospectus	recording acts recording fee recoup recourse Recourse Loan Recouvrement des couts Recovery recovery fund Recovery of Cost Recovery Period Recovery Property Recovery rate recreational lease Recta del mercado de capitales Rectangle rectangular survey Recuperacao dos custos Recuperacao sem empregos Recuperacion Recuperacion de costos Recuperacion sin empleo Recursos humanos Recursos propios RED Red Chip red herring Red Ink Red-Lining reddendum clause Reddito imputato redeem Redeemable Redeemable Bond redeemable ground rents redeemable rent Redemption redemption charge Redemption Cushion Redemption Date Redemption Fee Redemption or Call Redemption Premium Redemption Price redemption rights Redenomination Redescuento redevelop redevelopment agency Rediscount rediscount rate Redistribuicao de renda	Red Hat Network Services Red Hat Package Manager Red Hat Professional Workstation Red Hat Security Advisory Red Hat Society Red Hat Systems Engineer Red Hat Training red hats red hats Red hatters Red hatters red haw Red Haw State Park Red head Red head Red Headed Step Child Red heads Red heads Red Heart Red Heart Super Saver Red Heart the Ticker Red Heart Warriors Society red heat Red heeler Red heeler red helleborine red hematite Red Hepatisation red hepatization red herring Red herring (fallacy) Red herring fallacy Red herring prospectus Red herring prospectus Red herring prospectus Red Herring Prospectuses Red Herring Prospectuses Red herrings Red herrings Red herrings Red High Red Hill Band Red Hill Creek Expressway Red Hill Elementary School Red Hill Mining Town Red Hill Paddington Community Centre Red Hill Patrick Henry National Memorial Red hill plantation Red Hills Horse Trials Red Hills State Park red hind Red Hispana de Desarrollo Empresarial Red Hook Civic Association Red Hook Community Justice Center Red Hook High School Red Hook Soccer Club, Inc. Red Horn RED HORSE RED HORSE

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Preliminary Prospectus
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Red Hat Network Services
Red Hat Package Manager
Red Hat Professional Workstation
Red Hat Security Advisory
Red Hat Society
Red Hat Systems Engineer
Red Hat Training
red hats
red hats
Red hatters
Red hatters
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Red Haw State Park
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Red head
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Red Heart Super Saver
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Red Heart Warriors Society
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Red heeler
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Red Hepatisation
red hepatization

red herring

Red herring (fallacy)
Red herring fallacy
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Red herring prospectus
Red herring prospectus
Red Herring Prospectuses
Red Herring Prospectuses
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Red herrings
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Red Hill Paddington Community Centre
Red Hill Patrick Henry National Memorial
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Red Hills Horse Trials
Red Hills State Park
red hind
Red Hispana de Desarrollo Empresarial
Red Hook Civic Association
Red Hook Community Justice Center
Red Hook High School
Red Hook Soccer Club, Inc.
Red Horn
RED HORSE
RED HORSE