(n) a first draft of a prospectus; must be clearly marked to indicate that parts may be changed in the final prospectus, Syn. red herring, Example:because some portions of the cover page are printed in red ink a preliminary prospectus is sometimes called a red herring
(n) a formal written offer to sell securities (filed with the SEC) that sets forth a plan for a (proposed) business enterprise, Example:a prospectus should contain the facts that an investor needs to make an informed decision
n. [ L., a prospect, sight, view: cf. F. prospectus. See Prospect. ] A summary, plan, or scheme of something proposed, affording a prospect of its nature; especially, an exposition of the scheme of an unpublished literary work. [ 1913 Webster ]