Red herring

1.

A preliminary - or pathfinder - version of a prospectus or offering memorandum, giving limited details relating to a prospective issue of securities.

2.

Irrelevant information which may distract from more important lines of enquiry.

For example, professional examinations may intentionally include small amounts of red herring information, in order to test candidates' understanding.

The rationale for doing so is that the ability to identify and select relevant information, and to disregard red herrings, is an important professional skill to test.

See also

• Prospectus
• Offering memorandum
• Red tape
• Security
• Suggested solution