A "red herring" is a preliminary prospectus for a securities offering filed with the Securities and Exchange Commission (SEC), but not yet approved. It is an offering document that contains information about the issuer, its prospects, financial information, management, ownership, risks, and other information material to a prospective investor. The term is derived from the fact that sometimes the prospectus document itself contains a warning statement in red ink on the side of the document stating that it is not an official offer to sell a security. Only after full approval by the SEC of the related registration statement can the issuer sell the securities in a public offering.