The stamp on a prospectus accompanying a new issue that indicates the issue has not yet been approved for sale by the SEC is called the

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The stamp on a prospectus accompanying a new issue that indicates the issue has not yet been approved for sale by the SEC is called the "red herring". It is called a "red herring" because it includes a disclaimer that states that the information provided may not be complete or accurate and that investors should not rely solely on the information provided.

The Stamp on a Prospectus Accompanying a New Issue That