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.