what is mean by Red herrting
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Answer / chandu
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.
| Is This Answer Correct ? | 10 Yes | 1 No |
Answer / babu
"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
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Answer / chittibabu
it is not red herting, it is red herring pls correct the
question..
"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:
1.purpose of the issue;
2.proposed offering price range;
3.disclosure of any option agreement;
4.underwriter's commissions and discounts;
5.promotion expenses;
6.net proceeds to the issuing company (issuer);
7.balance sheet;
8.earnings statements for last 3 years, if available;
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / ravi
red hearcing prospectus is a document containing details
of ac ompany for an i.p.o
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / onkar singh
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.
| Is This Answer Correct ? | 0 Yes | 3 No |
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