red herring


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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.

References in periodicals archive ?
Red Herrings editorial staff evaluated companies on both quantitative and qualitative criteria, such as financial performance, technological innovation and intellectual property, DNA of the founders, business model, customer footprint, and market penetration.
REAL SUSPECT OR RED HERRING? Abi could have gone crazy over Lucy's affair with her dad.
Red Herring is a global media company which unites the world's best high technology innovators, venture investors and business decision makers in a variety of forums: a leading innovation magazine, an online daily technology news service, technology newsletters and major events for technology leaders around the globe.
This unique assessment of potential is complemented by a review of company track records and standings, which allows Red Herring to see past the "buzz" and make the list a valuable tool for discovering and advocating for the best business opportunities in the industry.
RUNNING latte Large heart Ponte dress by Red Herring [euro]48
STVDIO Jeff Banks jacket PS110 (above), trousers PS69, shirt PS45 and tie PS18 with J by Jasper Conran shoes, PS80 and (right) Red Herring shirt PS28 and jacket PS30, all from Debenhams
The award was received by Zibber Mohiuddin, Chairman Pring, at the auspicious event hosted by Red Herring in Hong Kong
Islamabad -- Pring (e-Business Pvt Ltd) and GenITeam have been declared winners of the 2012 Red Herring Top Asia 100.
Ben Di Lisi for Principles Front Pleat satin gold Shirt, EUR53; Henry Holland black 3/4 length skirt, EUR21; Red Herring Kahki Military jacket, EUR83; Red Herring Necklace, EUR27; Red Herring Necklace, EUR22.50; Red Herring Shoes, EUR54.50
The long debate over privatization at Southbridge Towers near South Street Seaport, which contains 1,651 Mitchell-Lama co-op apartments, is heating up after a new 605-page "red herring" report was released on the issue.
And there's some great shoes to go with the outfits - especially from Red Herring at Debenhams.
And there's plenty of great shoes to go with the outfits - especially from Red Herring at Debenhams.