Preliminary Prospectus

A first draft registration statement filed by a firm prior to proceeding with an initial public offering of securities. The document, filed with the Securities & Exchange Commission, is intended to provide pertinent information to prospective shareholders about the company's business description, management, strategic initiatives, financial statements and ownership structure.

The SEC requires a preliminary prospectus to be printed with red ink on the left side of the cover; as a result, the document has been nicknamed the "red herring".


Investment dictionary. . 2012.

Look at other dictionaries:

  • preliminary prospectus — Red Herring, also known as preliminary prospectus The preliminary prospectus is essentially Part I of the registration statement and may omit certain information relating to the offering (such as the final offering price). Also known as the Red… …   Law dictionary

  • preliminary prospectus — noun a first draft of a prospectus; must be clearly marked to indicate that parts may be changed in the final prospectus because some portions of the cover page are printed in red ink a preliminary prospectus is sometimes called a red herring •… …   Useful english dictionary

  • Preliminary prospectus — A preliminary version of a prospectus. The New York Times Financial Glossary …   Financial and business terms

  • preliminary prospectus — An initial or tentative version of a prospectus. Bloomberg Financial Dictionary …   Financial and business terms

  • preliminary prospectus — /prɪˌlɪmɪn(ə)ri prə spektəs/ noun same as pathfinder prospectus …   Dictionary of banking and finance

  • preliminary prospectus — Fin a document issued prior to a share issue that gives details of the shares available …   The ultimate business dictionary

  • prospectus — pro·spec·tus /prə spek təs/ n pl tus·es / tə səz/: a preliminary printed statement describing a business or other enterprise and distributed to prospective buyers, investors, or participants; specif: a description of a new security issue supplied …   Law dictionary

  • Prospectus — A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public. A prospectus should contain the facts that an investor needs to make… …   Investment dictionary

  • preliminary offering circular — A draft final offering circular (also called a pathfinder prospectus in UK equity issues and a red herring in the US) released to potential investors giving them comprehensive information on the issue of securities or bonds and the issuer company …   Law dictionary

  • prospectus — noun (plural tuses) Etymology: Latin, prospect Date: 1765 1. a preliminary printed statement that describes an enterprise (as a business or publication) and that is distributed to prospective buyers, investors, or participants 2. something (as a… …   New Collegiate Dictionary

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