Roadshows & Non-Deal Roadshows Flashcards
7 cards from real CIRO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Roadshows & Non-Deal Roadshows flashcards as text
What is the typical duration of a traditional IPO roadshow in the United States?
Answer: Approximately two weeks covering major financial centers
A typical U.S. IPO roadshow lasts about two weeks, with management visiting major institutional investor hubs such as New York, Boston, Chicago, San Francisco, and sometimes international cities.
Under Regulation FD, what must an IR officer ensure when discussing material information during a non-deal roadshow?
Answer: Any material, non-public information disclosed must be simultaneously or subsequently disclosed publicly
Regulation FD requires that any material, non-public information selectively disclosed to investors must also be made publicly available, preventing unfair information advantages.
What is the primary purpose of targeting analysis conducted before a roadshow?
Answer: To determine which institutional investors are most likely to be interested in owning the stock
Targeting analysis helps the IR team prioritize outreach to institutional investors whose investment mandates, sector focus, and portfolio characteristics align with the company's profile.
What does 'book building' refer to in the context of an IPO roadshow?
Answer: Collecting indications of interest from institutional investors to determine demand and price the offering
Book building is the process by which underwriters gather non-binding investor commitments (indications of interest) during the roadshow to gauge demand and set the final IPO price.
Which metric is most commonly used to evaluate the effectiveness of a non-deal roadshow?
Answer: The number and quality of meetings held relative to targeted investors, plus subsequent ownership changes
NDR effectiveness is best measured by tracking whether targeted investors subsequently increased positions, the breadth of high-quality meetings secured, and shifts in the institutional shareholder base.
What is a 'bus tour' in the context of investor relations roadshows?
Answer: A roadshow format where management travels to multiple investor offices in one city in a single day
A bus tour is an efficient roadshow format where management is transported between multiple investor offices in one city in a single day, maximizing meeting density without air travel.
How should an IR officer handle questions about material non-public information (MNPI) raised during a one-on-one roadshow meeting?
Answer: Decline to answer and redirect the conversation to publicly available information
Under Regulation FD, IR officers must decline to disclose MNPI in selective settings and redirect to public disclosures, ensuring fair treatment of all investors.