Red herring prospectus
Red herring prospectus (alternatively known as preliminary prospectus) is a preliminary prospectus that may be distributed to potential buyers prior to approval of the registration statement by the Securities and Exchange Commission. After the registration has become effective, the securities— accompanied by the prospectus—may be offered for sale.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Red herring prospectus (preliminary prospectus). A preliminary prospectus that may be distributed to potential buyers prior to approval of the registration statement by the Securities and Exchange Commission. After the registration has become effective, the securities— accompanied by the prospectus—may be offered for sale.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
