The preliminary version of a prospectus, called a "red herring," may not be released to the public until approved by the SEC.

Question

Quizplus · Accepted Answer

A red herring prospectus can be circulated to potential investors before SEC approval, but it must include a statement indicating that it is not an offer to sell or a solicitation of an offer to buy, as the registration statement has not yet become effective.

The Preliminary Version of a Prospectus, Called a "Red Herring