What is a roadshow? What is book-building? Explanation

Jump to Solution
Category:

What is a roadshow? What is book-building? Explanation

0
0

What is a roadshow? What is book-building?

Explanation & AnswerSolution by a verified expert

Explanation

Roadshow is a set of presentations related to the issue of new securities prepared by the company's management or the underwriter to influence the potential investors to buy the securities. Presentations are made after the registration of securities by the SEC but before the final public offer.
Book building is a process under which an underwriter, hired by the issuer company invites the potential investors to bid for the number of securities and the price at which they want to purchase those securities. After collecting all the bids, the underwriter analyzes the demand of securities and determines the price at which the final public offer should be made.

Verified Answer

Roadshow is the set of presentations prepared by the underwriter or the company before the final public offer in order to attract the investors to apply for securities a company is going to issue.
Book building is a process used by the underwriter to determine the final price of securities to be issued by inviting the investors to bid for the number and price of securities they are willing to pay.

Purchase this answer to view it. $5
Login/Sign up for free, load your wallet instantly using PayPal or cards and purchase this solution to view it.

Looking for the solution to this or another homework question?

If you need essay writing assistance or homework solutions, log in or sign up for a free account and ask our writers any homework question.