Dictionary  red' her'ring1. a smoked herring. 2. something intended to divert attention from the real problem or matter at hand; a misleading clue. 3. Also called red'-her'ring prospec"tus. Finance.a tentative prospectus circulated by the underwriters of a new issue of stocks or bonds that is pending approval by the U.S. Securities and Exchange Commission: so called because the front cover of such a prospectus must carry a special notice printed in red. 4. any similar tentative financial prospectus, as one concerning a pending or proposed sale of cooperative or condominium apartments. Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.
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