Glossary
Red Herring
A preliminary prospectus distributed during the roadshow, before the offer price is set.
The red herring is the preliminary prospectus circulated during marketing. It contains all material information about the company and the offering except the final price and final share count, both of which are determined at pricing.
The name comes from a red disclaimer that appears on the cover noting that the document is preliminary and that securities cannot yet be sold. Once the offering prices, a final pricing prospectus (Rule 424B) is filed.