Caitlyn is interested in purchasing 1,500 shares of ABC, Inc., when the shares are issued.Her broker just gave her a preliminary prospectus to review as she waits for the shares to be cleared for sale.What is the name of this prospectus?

Question

Quizplus · Accepted Answer

The preliminary prospectus given to Caitlyn by her broker is known as a red herring. It contains important information about the company and the upcoming issuance of shares, but is not yet finalized or approved for sale.

Caitlyn Is Interested in Purchasing 1,500 Shares of ABC, Inc