Red Herring
A preliminary registration statement that must be filed with the SEC describing a new issue of stock and the prospects of the issuing company. Investopedia Says:
There is no price or issue size stated in the red herring, and it is sometimes updated several times before being called the final prospectus. It is known as a red herring because it contains a passage in red that states the company is not attempting to sell its shares before the registration is approved by the SEC. Related Terms:
Final Prospectus
Gun Jumping
Initial Public Offering - IPO
IPO Lock-Up
New Issue
Primary Market
Prospectus
Securities and Exchange Commission - SEC
Tombstone
Underwriting |