Series 79 practice questionhardIPO Process
During an IPO, what can cause the book-building process to be delayed or disrupted after the roadshow has started?
- AThe issuer’s stock being delisted on a foreign exchange
- BResearch analyst presentations to potential investors
- CMaterial changes in the issuer’s business or financials requiring SEC amendments✓ Correct answer
- DA large investor requesting an unusual allocation
Explanation
Why C — Material changes in the issuer’s business or financials requiring SEC amendments
Material changes require amendments to the registration statement, which can halt book-building until the SEC review is complete. The trap is assuming investor behavior or analyst activity would pause the process, but regulatory filings are the key factor.
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