What Is the Difference Between a Prospectus and a Red

question 74

Multiple Choice

What is the difference between a prospectus and a red herring prospectus?

• A) The red herring prospectus is a preliminary version distributed to potential equity investors.
• B) The red herring prospectus is a corrected version of the prospectus.
• C) The red herring prospectus is only for issuing long-term bonds.
• D) The red herring prospectus is the report filed with the SEC but not necessarily distributed to equity investors.