Series 79 practice questioneasyBook Building and Pricing
What is the main purpose of a roadshow in an IPO?
- ATo lock the aftermarket price through stabilization
- BTo finalize the indenture
- CTo market the investment thesis and gather investor feedback before pricing✓ Correct answer
- DTo satisfy Rule 144 holding periods
Explanation
Why C — To market the investment thesis and gather investor feedback before pricing
To market the investment thesis and gather investor feedback before pricing Management and bankers use the roadshow to explain the company, answer questions, and test demand. The resulting investor feedback informs price and allocation decisions.
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