Wednesday, July 15, 2009

Keep Guessing#32

X is a document submitted by a company which does not have complete particulars on the price of the securities offered and quantum of securities offered. X is termed so because the disclosure statement is printed in red ink on the cover explicitly stating that the issuing company is not attempting to sell its shares.

The term X originates from the tradition whereby young hunting dogs in Britain were trained to follow a scent with the use of a red (salted and smoked) Fish. This pungent fish would be dragged across a trail until the puppy learned to follow the scent.

It is also an idiom referring to a device which intends to divert the audience from the truth or an item of significance.

What is X?

Ans: Red Herring, cracked by one and all.