29 May 2013

Question Of The Day #81: Disclaimer

Weekly Theme: IPO


Preparation of a registration statement is the first step for any private company looking to go public. This statement has two parts, the first part: “selling document” which is available only to investors in the offering. This selling document is known by a very famous term and what does the name relate to

Answer: (Please highlight the text below)

Red herring prospectus: (the name "Red Herring" relates to the red lettered disclaimer displayed on the front page of each preliminary prospectus)

4 comments:

  1. Selling document is called Prospectus and relates to the important facts about the company's business operations, financial condition, and management.

    ReplyDelete
  2. IPO -Initial Public Offering.

    ReplyDelete
  3. Red Herring

    Red herring is an English-language idiom, a logical fallacy that misleads or detracts from the issue.

    ReplyDelete