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Red herring

 

A preliminary registration statement that must be filed with the SEC describing a new issue of stock and the prospects of the issuing company.

Investopedia Says:
There is no price or issue size stated in the red herring, and it is sometimes updated several times before being called the final prospectus. It is known as a red herring because it contains a passage in red that states the company is not attempting to sell its shares before the registration is approved by the SEC.

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Financial & Investment Dictionary: Preliminary Prospectus
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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.

Real Estate Dictionary: Red Herring
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A proposed Prospectus that has not been approved by the Securities and Exchange Commission (SEC) or state securities commission. See Public Offering.
Example: A red herring is shown in Table 45.

Table 45 Red Herring Prospectus

Proposed Prospectus

A registration statement has been filed with the Securities and Exchange Commission but is subject to change. The securities described herein may not be sold until approval becomes effective.

Accounting Dictionary: Red Herring
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Slang term for a preliminary Prospectus that outlines the important features of a new issue. This prospectus contains no selling price information or offering date. It is so named because of the stamped red-ink statement on the first page telling the reader that the document is not an official offer to sell the securities. Once the Registration Statement is approved by the SEC, the offering circular, the final, statutory prospectus, is printed and the security can be offered for sale.

Law Dictionary: Red Herring
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An issue, whether legal or factual, raised in a case or law school exam which may be important generally but which has no relevant importance to the question at hand. Also, a preliminary prospectus, concerning a future stock issue, distributed during the waiting period-the period from the filing date to the effective date of a registration statement. Henn & Alexander, The Law of Corporations 805 (3d ed. 1983).

Wikipedia: Red herring (idiom)
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A red herring is an idiom referring to a device which intends to divert the audience from the truth or an item of significance.[1] For example, in mystery fiction, an innocent party may be purposefully cast as highly suspect through emphasis or descriptive techniques; attention is drawn away from the true guilty party.

In a literal sense, there is no such fish species as a "red herring"; rather it refers to a particularly strong kipper, meaning a fish - typically a herring but not always - that has been strongly cured in brine and/or heavily smoked. This process makes the fish particularly pungent smelling and turns its flesh red (and makes it very noticeable, notably for the idiom).[2] This term, in its literal sense as a type of kipper, can be dated to the late Middle Ages, as quoted here c1400 Femina (Trin-C B.14.40) 27: "He eteþ no ffyssh But heryng red." Samuel Pepys used it in his diary entry of 28 February 1660 "Up in the morning, and had some red herrings to our breakfast, while my boot-heel was a-mending, by the same token the boy left the hole as big as it was before."[3]

The idiomatic sense of "red herring" has, until very recently, been thought to originate from a supposed technique of training young scent hounds.[2] There are variations of the story, but according to one version, the pungent red herring would be dragged along a trail until a puppy learned to follow the scent. Later, when the dog was being trained to follow the faint odour of a fox or a badger, the trainer would drag a red herring (whose strong scent confuses the animal) perpendicular to the animal's trail to confuse the dog.[4] The dog would eventually learn to follow the original scent rather than the stronger scent. An alternate etymology points to escaping convicts who would use the pungent fish to throw off hounds in pursuit.[5]

In reality, the technique was probably never used to train hounds or help desperate criminals. The idiom probably originates from an article published 14 February, 1807 by journalist William Cobbett in the polemical Weekly Political Register.[6] In a critique of the English press, which had mistakenly reported Napoleon's defeat, Cobbett recounted that he had once used a red herring to deflect hounds in pursuit of a hare, adding "It was a mere transitory effect of the political red-herring; for, on the Saturday, the scent became as cold as a stone."[6] As British etymologist Michael Quinion says, "This story, and [Cobbett's] extended repetition of it in 1833, was enough to get the figurative sense of red herring into the minds of his readers, unfortunately also with the false idea that it came from some real practice of huntsmen."[6]

See also

References

  1. ^ Red herring. (n.d.). The American Heritage Dictionary of the English Language, Fourth Edition. Retrieved February 04, 2009, from: http://dictionary.reference.com/browse/Red%20herring
  2. ^ a b Quinion, Michael (2002). "The Lure of the Red Herring". WorldWideWords. http://www.worldwidewords.org/articles/herring.htm. Retrieved April 21 2007. 
  3. ^ Pepys Samuel (1893). "The Diary of Samuel Pepys M.A. F.R.S.". Samuel Pepys' Diary. http://www.pepysdiary.com/archive/1660/02/28/index.php. Retrieved February 21 2006. 
  4. ^ Currall, J.E.P; M.S. Moss; S.A.J. Stuart (2008). "Authenticity: a red herring?". Journal of Applied Logic 6 (4): 534–544. ISSN 1570-8683. 
  5. ^ Hendrickson, R. (2000). The facts on file encyclopedia of word and phrase origins. United States: Checkmark.
  6. ^ a b c Quinion, M. (2008). The lure of the red herring. World Wide Words. Retrieved from: http://www.worldwidewords.org/articles/herring.htm

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved.  Read more
Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved.  Read more
Law Dictionary. Law Dictionary. Copyright © 2003 by Barron's Educational Series, Inc. All rights reserved.  Read more
Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Red herring (idiom)" Read more