Preliminary Prospectus

Dictionary Says

Definition of '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

Investopedia explains 'Preliminary Prospectus'

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 Definitions

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    A preliminary registration statement that must be filed with the SEC describing a new issue of stock and the prospects of the issuing company.
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    • Underwriting

      1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The ...
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