Preliminary Prospectus (Noun)
Meaning
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".
Classification
Nouns denoting communicative processes and contents.
Examples
- The company released a preliminary prospectus to gauge investor interest in their upcoming IPO.
- Before issuing the final prospectus, the company is required to file a preliminary prospectus with the regulatory authority.
- A preliminary prospectus, also known as a red herring, was circulated among potential investors to inform them about the proposed terms of the offering.
- The lawyer carefully reviewed the preliminary prospectus to ensure that it complied with all relevant securities laws and regulations.
- Investors should be cautious when relying on a preliminary prospectus, as the terms and conditions may be subject to change in the final version.