Series 79 practice questionmediumIPO Process
At what stage in the IPO process are institutional investors typically asked to indicate interest and provide preliminary orders for shares?
- AImmediately after the registration statement is filed
- BDuring the company’s confidential filing with the SEC
- CDuring the roadshow and book-building period✓ Correct answer
- DAfter shares are priced and trading has commenced
Explanation
Why C — During the roadshow and book-building period
Book-building occurs during the roadshow, when underwriters gauge investor demand by collecting indications of interest. The trap is confusing the confidential filing or post-pricing phase with this critical stage.
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