What Is A Preliminary Prospectus?

The first offering document printed by the company with some of the details of an IPO. The price range and number of shares to be issued is usually included in the preliminary prospectus but the terms may be changed before the final prospectus is distributed. Some lettering on the front cover is printed in red so many people refer to it as the "red herring." During presentations to potential investors, company representatives are limited to discussing only information that is contained in the current prospectus.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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