Inked Stock Message
Inked Stock Message
What is an IPO’s red ink warning message’s nickname?
A company preparing for an initial public stock offering (IPO) files a preliminary prospectus that includes a warning message printed in red ink. What is this document’s nickname?
A red herring is the preliminary prospectus that you are referring to. It is called red herring because the warning on the cover is written in red. What this means is that the document is still under review by the SEC and could change.
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