Most frequently associated with an initial public offering (IPO), this document, like the previously submitted Form S-1 registration statement, must be filed with the Securities and Exchange Commission (SEC).
Those investors may, however, express an "indication of interest" in the offering, provided that they have received a copy of the red herring at least 72 hours prior to the public sale.
After the registration statement becomes effective, and the stock is offered to the public, indications of interest may be converted to purchase orders, at the buyer's discretion.
The Preliminary (or Red Herring) Prospectus is distributed during the quiet period, before the registration statement has become effective with the Securities and Exchange Commission (SEC).
These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective.The wording can be, and usually is, slightly different with each individual filing.