Question

The preliminary version of a security offer that is circulated to potential buyers before SEC approval (registration) is obtained is called a: Final prospectus Shelf registration statement Due diligence draft Waiting period offer Red herring prospectus

Answer 1

red herring prospectus.

Step-by-step explanation:

Red herring can be regarded as preliminary prospectus that is been filed by a company that has Securities and Exchange Commission (SEC), and this is usually have connection with

initial public offering of the company (IPO). A red herring prospectus encompass most of the information pertaining to the operations as well as prospects of the company though does not include key details like security issue, that's its price as well as number of shares offered.It should be noted that The preliminary version of a security offer that is circulated to potential buyers before SEC approval (registration) is obtained is called red herring prospectus.