Red Herring
Definition of '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. |
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Investopedia explains 'Red Herring'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. |
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