The preliminary document of an initial public offering (IPO) that is prepared after the registration statement is filed with the securities and exchange authority. It is the most important document that helps marketing the offering to prospective investors. Before the issuer of a new security has set the selling price and its registration statement has been approved for completeness and accuracy by relevant authorities, a preliminary document (brochure) is handed over to potential investors, with all details of the issue and information about the issuer. This document is also called “red herring” because of the red band of legal terms printed as vertically on the left hand side of the cover of the document. The red print means the issue has not yet been approved by the securities and exchange authority.