Capital MarketsQuestion 308 of 398
During the cooling-off period of a registration, which document may be used to obtain indications of interest from investors?
a.The final (statutory) prospectus
b.The preliminary prospectus (red herring)
c.A tombstone contract
d.The registration statement itself
Explanation
During the cooling-off period, the preliminary prospectus, known as a red herring, may be distributed to gather non-binding indications of interest. It omits the final public offering price and effective date, which appear in the final prospectus once the registration is effective.
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