Preliminary Prospectus
A first draft registration statement filed by a firm prior to proceeding with an initial public offering of securities. The document, filed with the Securities & Exchange Commission, is intended to provide pertinent information to prospective shareholders about the company's business description, management, strategic initiatives, financial statements and ownership structure. Investopedia Says:
The SEC requires a preliminary prospectus to be printed with red ink on the left side of the cover; as a result, the document has been nicknamed the "red herring". Related Terms:
Initial Public Offering - IPO
Investment Bank
Prospectus
Public Offering Price - POP
Red Herring
Securities & Exchange Commission - SEC
Underwriting |