A preliminary registration statement that must be filed 
with the SEC(Securities and Exchange Commission)describing 
a new issue of stock and the prospects of the issuing 
company. 

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 its shares before the 
registration is approved by the SEC.

Red herring prospecutus is issued by the companies with 
really showing the number of shares to be issued & without 
the face value of the security to be issued. It tells the 
company regading the demand of their security & the value 
of security is determined afterwards.

red hearcing prospectus is a document containing  details 
of ac ompany for an i.p.o

"Red-herring prospectus" Means a prospectus, which does not 
have complete particulars on the price of the securities 
offered and quantum of securities offered. The red herring 
statement contains:

purpose of the issue; 
proposed offering price range; 
disclosure of any option agreement; 
underwriter's commissions and discounts; 
promotion expenses; 
net proceeds to the issuing company (issuer); 
balance sheet; 
earnings statements for last 3 years, if available; 
names and address of all officers, directors, underwriters 
and stockholders owning 10% or more of the current 
outstanding stock; 
copy of the underwriting agreement; 
legal opinion on the issue; 
copies of the articles of incorporation of the issuer