| Red Herring |
 |
A
preliminary registration statement describing the issue(IPO) and prospects
of the company that must be filled with the SEC or provincial securities
commission. There is no price or issue size stated in the red herring.
|
 |
Red Herring's are sometimes updated several times before it is called the final prospectus. It is known as a red herring because it contains a statement in red that the company is not attempting to sell their shares before the registration is approved by the SEC. |
|
|
|
|
Dictionary
