A part of the registration statement,called the preliminary prospectus,circulates to investors before the stock is offered.This preliminary prospectus is also called a(n):

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The term "red herring" refers to the preliminary prospectus that circulates to investors before the stock is offered. It is called a red herring because it contains a disclaimer that the information in the prospectus is not complete and may be changed. This is to prevent potential investors from making decisions based on incomplete or potentially inaccurate information.

A Part of the Registration Statement,called the Preliminary Prospectus,circulates to Investors