Answered: Explain red herring

Business

Finance

Explain red herring

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter15: Harvesting The Business Venture Investment

Section15.6: Going Public

Problem 1CC

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Question

Explain red herring

Expert Solution

Step 1

Red herring

It is an introductory prospectus recorded with the Securities and Exchange Commission (SEC) by an organization, ordinarily connected to the organization's initial public offering (IPO).

Step 2

A red herring prospectus includes most data about the tasks and prospects of the organization yet does exclude key insights concerning the security issue, for example, its cost and the number of offers advertised.

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