red herring
| 1. | a smoked herring. |
| 2. | something intended to divert attention from the real problem or matter at hand; a misleading clue. |
| 3. | Also called red-herring prospectus. Finance. a tentative prospectus circulated by the underwriters of a new issue of stocks or bonds that is pending approval by the U.S. Securities and Exchange Commission: so called because the front cover of such a prospectus must carry a special notice printed in red. |
| 4. | any similar tentative financial prospectus, as one concerning a pending or proposed sale of cooperative or condominium apartments. |
1375–1425; late ME
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.
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| red herring
n.
[From its use to distract hunting dogs from the trail.] |
Copyright © 2006 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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red herring
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| red herring | |
noun | |
| 1. | any diversion intended to distract attention from the main issue |
| 2. | a dried and smoked herring having a reddish color |
| 3. | a first draft of a prospectus; must be clearly marked to indicate that parts may be changed in the final prospectus; "because some portions of the cover page are printed in red ink a preliminary prospectus is sometimes called a red herring" [syn: preliminary prospectus] |
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red herring
Something that draws attention away from the central issue, as in Talking about the new plant is a red herring to keep us from learning about downsizing plans. The herring in this expression is red and strong-smelling from being preserved by smoking. The idiom alludes to dragging a smoked herring across a trail to cover up the scent and throw off tracking dogs. [Late 1800s]
Copyright © 1997 by The Christine Ammer 1992 Trust. Published by Houghton Mifflin Company.
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red herring
In argument, something designed to divert an opponent's attention from the central issue. If a herring is dragged across a trail that hounds are following, it throws them off the scent.
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Published by Houghton Mifflin Company. All rights reserved.
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Red Herring
A preliminary registration statement that must be filed with the SEC describing a new issue of stock (IPO) and the prospects of the issuing company.
Investopedia Commentary
There is no price or issue size stated in the red herring, and it is sometimes updated several times before being called the final prospectus. It is known as a red herring because it contains a passage in red that states the company is not attempting to sell their shares before the registration is approved by the SEC.
Related Links
Don't Forget To Read The Prospectus!
IPO Basics Tutorial
See also: Gun Jumping, IPO, Issuer, Prospectus, SEC, Tombstone, Underwriting
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red herring
- A prospectus that is given to potential investors in a new security issue before the selling price has been set and before the issuer's registration statement has been approved for accuracy and completeness by the SEC. This document, which provides details of the issue and facts concerning the issuer, is so named because of a statement on it, printed in red, that the issue has not yet been approved by the SEC. Also called preliminary prospectus.
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Main Entry: red her·ring
Pronunciation: "red-'her-i[ng]
Function: noun
Etymology: red herring something that distracts attention from the main issue, diversion
: a preliminary prospectus (as for the sale of securities) that is not yet approved by the appropriate body (as the Securities and Exchange Commission)
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