Preliminary Prospectus

Posted on Jan 30, 2015

A preliminary prospectus is given to investors when brokers obtain indications of interest. Although the document does not have all the information included in the offering circular, it does include the major facts. A preliminary prospectus is often called a “red herring” because its front-page notice is printed in red ink. The notice states that the preliminary prospectus is “subject to completion or amendment” and “shall not constitute an offer to sell…”