See: Prospectus. See: Red Herring.
It’s almost IPO time here at Hot Porridge Manufacturing, and we couldn’t be more excited. We’ve been dreaming of being listed on a stock exchange since the day we created Hot Porridge in our parents’ garage with nothing but some popsicle sticks and a hot glue gun (and, of course, a deep and abiding love of hot porridge). All that’s left to do now is send out our pathfinder prospectus, and then we’re good to go.
A “pathfinder prospectus” is a special company prospectus that goes out to a very limited number of very special people—like underwriters and big-time investors—before the organization’s target IPO date. It contains our company’s financial info, its background, info on our leadership team, and anything else that we think might convince those investors and underwriters that Hot Porridge stock is going to be a hot commodity. The higher the demand is, the higher that initial price offering will be, so it’s crucial for companies to make sure their pathfinder prospectus is as awesome—and as accurate—as it can be.
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Finance: What is an IPO?25 Views
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What is a red herring? A red herring, so named because the cover page is printed in red ink, is a preliminary prospectus for an IPO. In a majority...