Which of the following best describes a "red herring" prospectus?
A)A shortened version of registration Form S-1 available to those companies that already have publicly traded securities.
B)A prospectus containing material irregularities and deficiencies.
C)Preliminary information provided to investors about an upcoming issue,and issued between the time a registration statement is presented to the SEC and its effective date.
D)Disclosure in the business press,outlined in red,informing investors of an upcoming offering.

Question

Quizplus · Accepted Answer

A "red herring" prospectus is a preliminary document shared with potential investors before the finalization of a public offering. It's issued during the waiting period between when a registration statement is filed with the SEC and when it becomes effective, allowing investors to begin evaluating the investment while the SEC reviews the offering details.

Which of the Following Best Describes a "Red Herring" Prospectus