answersLogoWhite

0

Source: Wikipedia

The term red herring originates from the tradition whereby young hunting dogs in Britain were trained to follow a scent with the use of a "red" (salted and smoked) herring (see kipper). This pungent fish would be dragged across a trail until the puppy learned to follow the scent. The reason it is called a red herring is due to a disclosure statement printed in red ink on the cover which explicitly states that the issuing company is not attempting to sell its shares. e.g. "A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. Information contained herein is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective."

User Avatar

Wiki User

16y ago

What else can I help you with?

Continue Learning about Finance

What is Red lining in real estate?

Red lining is an (illegal) practice of denying/raising charges for potential home-owners, usually associated with race. When red-lining, mortgage companies refuse to give home loans to people so that they can not live in a certain area.


How do no load mutual funds make money for the fund company?

The "no-load" label does not mean that the company selling the fund is a "non-profit" organization. If the company selling the fund is and/or has been successful, then it stands to reason that it is a profitable business. So a portion of your investment makes up for the profit on their end, which translates into cost (albeit not "load") on your end.Start by reading the prospectus and pay special attention to the "expense ratio". This is the portion of your investment that is "skimmed off the top" sight unseen if you don't look for it. Within the "expense ratio", consider the "12-b-1 fees", which needs to be compared with other funds in its "class".The subtlety of costs must also include consideration of taxes paid on gains especially on actively traded funds. For this, you have to focus on the "turnover ratio" within the prospectus to get a fair idea of what the costs of investing with a "no-load" fund would be.These and other factors needs to be considered and for some it is best discussed with a financial adviser whom you trust to look out for your interest (i.e. by being upfront about the costs associated with investing with him/her).


Where can you find a list of companies closing down?

So basically there is a good website for that called retar*sh.com


What is the money earned from investments called?

The money earned from investment is called as return on investment. if you invest in shares then it will be treated as dividend, if it in debentures then it will be known as interest. so different investment reuturns will have different names.


Why is central bank called the bank of banks?

because it it seen as the main (central) bank, so it is known as the bank of (all) banks.

Related Questions

And beware of red herring?

"Red herring" is a slang term used to describe a bogus diversion. For example, if a person is being chased in the forest, they might offer their shoes to another person so that the other person will be tracked and not them.


What eats herring?

Salmon eat herring. And so do people.


What are the prospectus of bbd ghaziabad?

only bbd is selling its name and noyhing there is no infrastructure as wel as standr of education and so we cant think about it prospectus


Was there a red herring in thirty nine clues maze of bones?

Yes, there was a red herring in "The 39 Clues: Maze of Bones." In the book, the character Dan Cahill initially believes that the clue leads to Paris, France, but it turns out to be a misdirection or red herring. The real clue leads them to another location entirely. This literary device is used to create suspense and mislead the characters and readers.


What is an example of the logical fallacy called a red herring?

A red herring is a statement designed to deflect attention by bringing up an unrelated or irrelevant point. There are a number of different forms, including one entitled "association fallacy" which attempts to falsely discredit an argument by association. Example : "My opponent says he is in favor of smaller cars for everyone, and so was Adolf Hitler when he commissioned the Volkswagen."


What is prospectus and what are the major components within a prospectus?

A prospectus is a legal document that is issued by a company wishing to list on the stock exchange. It provides the background, financial and management status of the company so that investors are able to make an informed decision about whether to invest or not. In most cases, a prospectus is a requirement to list on the stock exchange. The prospectus must be lodged with both the Australian Securities and Investments Commission (ASIC) and ASX. A prospectus is required to contain all information that investors and their advisers would require to make an informed assessment of: * The assets, liabilities, financial position, profits and losses, and prospects of the organisation; and * The rights attaching to the shares.


Why are erythrocytes called so?

Because they are red. "Eryth" is a prefix meaning "red"


Why is a red herring called a red herring?

In a crime or mystery story, the author will sometimes put in misleading information so that the reader or viewer is diverted away from guessing which character is the real villain. It is thought to come from the practice of hunting foxes with a pack of dogs, where a smelly fish is dragged across the trail of the fox in order to mislead the dogs. Red herrings can be used in other ways, where a phony secret is apparently allowed to slip out, as it was before the invasion of Normandy on D-Day in World War II. The Allies had leaked details of an entirely fictitious invasion group led by General George Patton, which tied down German defenses awaiting an attack (at Calais) that never came.


What is to herring as school is to whales?

Pod


Is herring a type of crops?

Herring is a fish, so it's generally not considered a crop unless it's farmed. Aquaculture farmers do actually refer to batches of their product as a "catfish crop," for example. But I've never heard of anyone farming herring, so I don't know if there would be any "crops."


What does the idiom 'red-herring ' mean?

In a crime or mystery story, the author will sometimes put in misleading information so that the reader or viewer is diverted away from guessing which character is the real villain. It is thought to come from the practice of hunting foxes with a pack of dogs, where a smelly fish is dragged across the trail of the fox in order to mislead the dogs.Although this can be a herring cured by salting and smoking, the actual fish used is more likely a kipper, which will take on a characteristically reddish hue.The term is more widely applied to deliberate disinformation, used as a diversion. For example, a politician might suggest a connection between his opponent and some fictitious illegal act, to occupy the investigative press and avoid revelations about his own activities.Something intended to divert attention from the real problem. A misleading clue.A distraction, something which you are meant to think has some relevance to the story line, but in fact means nothing.Something that draws attention away from the central issue, in a story.The English term 'red herring' has several distinct senses or meanings: 1: a first draft of a prospectus; must be clearly marked to indicate that parts may be changed in the final prospectus; 2: any diversion intended to distract attention from the main issue; 3: a dried and smoked herring having a reddish color


Is there such a fish that is red-orange If so what is it called?

Roughy