CIRO Roadshows & Non-Deal Roadshows 1 — Questions and Answers
Question 1: What is a non-deal roadshow (NDR) in investor relations?
- A marketing trip conducted by management to meet investors without the purpose of raising capital (Correct answer)
- A roadshow held exclusively for retail investors to promote new share issuances
- A regulatory requirement for companies to disclose quarterly earnings to analysts
- A conference organized by the SEC to educate public companies on disclosure rules
Correct answer: A marketing trip conducted by management to meet investors without the purpose of raising capital
An NDR is a series of investor meetings conducted to build relationships and communicate the company's strategy without a concurrent securities offering.
Question 2: During an IPO roadshow, who typically leads the investor presentations?
- The company's legal counsel and compliance officer
- The CEO and CFO, supported by the lead underwriter's banking team (Correct answer)
- The investor relations officer acting as the sole spokesperson
- The board of directors and audit committee chair
Correct answer: The CEO and CFO, supported by the lead underwriter's banking team
The CEO and CFO are the primary presenters because they carry the most credibility with institutional investors, while the lead underwriter coordinates logistics and facilitates the process.
Question 3: What is the primary purpose of conducting a roadshow in investor relations?
- To satisfy SEC disclosure requirements for material events
- To allow analysts to update their financial models with insider data
- To give management direct access to current and prospective institutional investors (Correct answer)
- To distribute press releases to international media outlets
Correct answer: To give management direct access to current and prospective institutional investors
Roadshows provide management with the opportunity to communicate the company's investment thesis directly to institutional investors and build long-term shareholder relationships.
Question 4: Which document is typically the centerpiece of a roadshow investor presentation?
- The company's 10-K annual report filed with the SEC
- An investor presentation deck covering strategy, financials, and investment highlights (Correct answer)
- The proxy statement detailing executive compensation
- A prospectus supplement filed on Form S-3
Correct answer: An investor presentation deck covering strategy, financials, and investment highlights
A tailored investor presentation deck highlights the company's value proposition, competitive positioning, financial performance, and growth strategy for investor audiences.
Question 5: What is the 'quiet period' as it applies to an IPO roadshow?
- A period after the IPO during which the underwriter cannot publish research on the company (Correct answer)
- The 48-hour media blackout required by FINRA before earnings announcements
- A mandatory silence period required by the SEC before a company files its S-1 registration
- A time when management must cease investor meetings while the SEC reviews the registration
Correct answer: A period after the IPO during which the underwriter cannot publish research on the company
The post-IPO quiet period restricts underwriters and their analysts from publishing research immediately after the offering to prevent conflicts of interest; this typically lasts 25–40 days.
Question 6: How far in advance should an IR team ideally begin planning a major roadshow?
- One week before the scheduled meetings
- One day before to ensure schedules are current
- Four to six weeks in advance to coordinate management calendars and investor targeting (Correct answer)
- Only after receiving written investor requests for meetings
Correct answer: Four to six weeks in advance to coordinate management calendars and investor targeting
Effective roadshow planning requires four to six weeks to coordinate executive availability, target the right investors, prepare materials, and book venues or travel logistics.
Question 7: Which meeting format is most common during a non-deal roadshow?
- Large group presentations to retail shareholders at public venues
- One-on-one meetings between management and portfolio managers or analysts at institutional investors (Correct answer)
- Press conferences with financial media followed by Q&A
- Panel discussions featuring the CEO alongside industry competitors
Correct answer: One-on-one meetings between management and portfolio managers or analysts at institutional investors
One-on-one meetings are the preferred format for NDRs because they allow for candid dialogue with key decision-makers at institutional investment firms.
CIRO Roadshows & Non-Deal Roadshows 1
What is a non-deal roadshow (NDR) in investor relations?