The preliminary prospectus, also known as the red herring, is the first document released by an underwriter of a new issue to prospective investors. It provides financial details about the issue but parts of the document may be changed before the final prospectus is issued.
A 'Red Herring' is a preliminary prospectus filed by a company with the Securities and Exchange Commission (SEC), typically in connection with an initial public offering (IPO). It provides potential investors with crucial information about the company and its offering without disclosing the total number of shares and the price.
