preliminary official statement (POS) definition

preliminary official statement (POS)

Preliminary prospectus on a pending new issue, circulated usually to gauge the level of interest among prospective investors by giving the broad information (but without indicating the price of the issue). Popularly known as red herring because of the notice (printed in red ink) on its first page which expressly states that the document is not an offer but a public disclosure on a forthcoming conditional sale. Also called preliminary prospectus.

preliminary official statement (POS) appears in the definitions of the following terms: preliminary prospectus and red herring

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