For Red Herring we have terms and definitions in 7 topics. The topics are Accounting, Accounting Terms, Finance, IPO, Political, Real Estate and Securities.

Red Herring (Accounting)

is a preliminary registration statement describing the issue (the IPO) and prospects of the company that must be filed 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 typed in red that the company is not attempting to sell their shares before the registration is approved by the SEC.

Red Herring (Accounting Terms)

"Pre-release" PROSPECTUS offering. An announcement of a future issuance of SECURITIES, given restricted circulation during the waiting period of 20 days or other specified period between the filing of a registration statement with the SEC and the effective date of the statement. A red herring is not an offer to sell or the solicitation of an offer to buy.

Red Herring (Finance)

A preliminary prospectus providing information required by the SEC. It excludes the offering price and the coupon of the new issue.

Red Herring (IPO)

This is the term of art for the preliminary prospectus. It gets its name from the printed red disclaimer on the left side of the prospectus.

Red Herring (Political)

Something irrelevant that is used to confuse or take the attention away from the something else. The politician who is asked an awkward question may introduce a red herring into his answer, to divert attention away from the awkward issue. The term comes from the use of red herrings in hunting, to distract the hounds.

Red Herring (Real Estate)

The preliminary prospectus for an initial public offering. Before the registration statement becomes effective, underwriters may use the preliminary prospectus to market the offering. The preliminary prospectus, however, must bear a legend printed in red ink stating that the offering has been filed but is not yet effective.

Red Herring (Securities)

See Preliminary Prospectus.

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