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 preliminary prospectus that circulates to investors before the stock is offered is commonly referred to as a red herring. It is called a red herring because it includes a disclaimer stating that the information is incomplete and subject to change, similar to a misleading clue in a mystery novel.

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