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 a red herring? (Plus Br...23 Views
finance a la shmoop what is a red herring?
hi I'm red, red-err-ing.. red herring I'm here to tell you about my role in high [Red herring swimming in the ocean]
finance I'm actually the co-star of an IPO, how so you asked well yes of
course you asked..what's that, what's my primary job well my primary job is to
distract that's kind of why I was put on earth here to distract people, fish and [Man on a ship]
birds from you know other things that's what the red in red herrings do and no
we're not communists although we all do like the same brand of plankton but
that's me the fish me the IPO mascot that's a lot more fun...
I'm the namesake of an investment marketing document I'm the papers that
get filed with the SEC that outline the details of a new offering an IPO....
A secondary placement of founder shares after a company has already been public
a while as well I'm also there for a bond offering, a proposed merger all of [List of what red herrings are used for]
them need me so why do I exist.... while the goal here is to give investors
time to really get to know the issue they may want to invest in I don't carry
all the details not specific pricing, no legally binding asks and just an outline
of what's being proposed but I'm like 98% done and by not being fully done
it's easy to amend and tweak and change this and that so that the really uptight [Red herring talking]
fisherman at the SEC don't get all hacked off if they you know end up
reeling something in that well they didn't want [Fisherman catches a shark]
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What is an IPO? IPO stands for initial public offering. These are used when a company decides to go public; meaning people can buy shares of the co...