Red Herring

A red herring directs to a document or information created to deceive or redirect attention from the true nature of a financial transaction, investment opportunity, or business arrangement. The term "red herring" originates from the practice of using a strong-smelling fish (herring) to distract hunting dogs from the scent of the game. In banking, a red herring may take various setups, including misleading financial statements, deceptive trade materials, or false pledges by financial institutions or individuals entangled in a transaction. A red herring typically creates a false perception of value or risk associated with a certain investment or transaction.