In the US financial Market, a "red herring" is a term designating a draft document in relation to an immediately forthcoming public issue of shares, bonds and other securities. This is in effect a draft "Prospectus" handed over by the Lead manager(-s) to potential Investors, in order to start gauging their Interest (the "Circling process").

(See Chapter 26 Value and corporate finance of the Vernimmen)

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