first document released by an underwriter of a new issue to prospective investors. The document offers financial details about the issue, but parts of the document may be changed before the final prospectus is issued. Because portions of the cover page of the preliminary prospectus are printed in red ink, it is popularly called the red herring. This also applies to the sale of cooperative apartments.
first document released by an underwriter of a new issue to prospective investors. The document offers financial details about the issue but does not contain all the information that will appear in the final or statutory prospectus, and parts of the document may be changed before the final prospectus is issued. Because portions of the cover page of the preliminary prospectus are printed in red ink, it is popularly called the red herring.
