What part of an IPO is a road show?
USINFO | 2013-11-15 11:49

 
To try and drum up interest in the IPO, the underwriter takes the prospectus and presents it to prospective investors.

This is what's called a road show. These can be trips around the world—thus the name road show—or can be video or internet presentations.

If a prospective investor likes the IPO, underwriters can legally offer them shares at the price they eventually set before the stock is listed on an exchange. This is called IPO allocation.

Road shows are usually for the bigger institutional investors like pension funds, rather than an individual investor.

 

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