The preliminary prospectus is often referred to as a/an _____

Question

Quizplus · Accepted Answer

The preliminary prospectus is often referred to as a "red herring" because it contains a disclaimer indicating that the information in the document is subject to change and is not yet final. This is meant to warn potential investors that the information in the prospectus may be incomplete or inaccurate, and that they should not rely solely on the preliminary prospectus in making investment decisions.

The Preliminary Prospectus Is Often Referred to as A/an _____