12. Which of the following best defines the term red herring? A. A public issue of securities in which securities are first offered to existing shareholders. Also called a rights offering. B. The purchase of securities from the issuing company by an investment banker for resale to the public. C. A preliminary prospectus distributed to prospective investors in a new issue of securities. D. The creation and sale of securities on public markets. E. Legal document describing details of the issuing corporation and the proposed offering to potential investors.