Section: 3 Initial Public Offerings (IPOs)
Sub Section: 3 Road Shows
Once the regulatory authority has commented on the registration statement and a preliminary prospectus has been distributed to interested investors, the investment bankers organize Road Shows in which they travel around the country to publicize the imminent offering. These road shows serve two purposes. First, they generate interest among potential investors and provide information about the offering. Second, they also provide information to the issuing firm and its underwriters about the price at which they will be able to market the securities.