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Finance Dictionary and Glossary of Investment Terms
A preliminary prospectus providing information required by the SEC. It excludes the offering price and the coupon of the new issue.
same as preliminary prospectus. Its name comes from the warning, printed in red, that information in the document is still being reviewed by the SEC and is subject to change.
A preliminary prospectus issued by stock-underwriting firms to measure investor interest in a prospective stock offering. The document must contain a warning, printed in red, that the document does not contain all the information normally required by the Securities and Exchange Commission, and that some parts may be changed before the final prospectus is issued to the public.
A preliminary registration statement that must be filed with the SEC or provincial securities commission. It describes the issue (IPO) and the prospects of the company. There is no price or issue size stated in the Red Herring.