DRHP
Regulation & taxAlso called: Offer document
Draft Red Herring Prospectus — the offer document filed before an IPO.
In plain terms
Free, hundreds of pages, and it contains a legally mandated list of everything that could go wrong.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Read the full lesson →
Objects of the issue
Regulation & taxThe DRHP section stating what the money raised will be used for.
In plain terms
“General corporate purposes” for a large share of proceeds is not a plan.
Risk factors
Regulation & taxThe mandated DRHP section listing what could go wrong.
In plain terms
Reads as boilerplate and is frequently specific and serious. Nobody reads it.