A printed document that summarizes a corporation's registration statement for a new issue of non-exempt securities that was filed with the SEC. It details material information about the corporation and the security being issued. A final prospectus must be given to all buyers of initial public offerings and other new issues. A preliminary prospectus is given to investors when brokers obtain indications of interest for an initial public offering. Although the document does not have all the information included in the final prospectus, it does include the major facts. A preliminary prospectus is often called a "red herring" because its front-page notice is printed in red ink. The notice states that the preliminary prospectus is "subject to completion or amendment" and "shall not constitute an offer to sell."

Related to Mutual Funds: The official document that describes a mutual fund.

Related to Equities: The official document that describes an equity.