preliminary prospectus(redirected from Preliminary Prospectuses)
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An initial or tentative version of a prospectus.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
See red herring.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.