CIRO Roadshows & Non-Deal Roadshows 2

Question 1

What is the typical duration of a traditional IPO roadshow in the United States?

Accepted Answer

Approximately two weeks covering major financial centers

Answer

One to two days covering only New York City

Answer

Four to six weeks to ensure broad retail investor coverage

Answer

One month with mandatory stops in all 50 states

Question 2

Under Regulation FD, what must an IR officer ensure when discussing material information during a non-deal roadshow?

Accepted Answer

Any material, non-public information disclosed must be simultaneously or subsequently disclosed publicly

Answer

The information is shared only with sell-side analysts before the meeting

Answer

Management can share forward guidance privately if it is marked confidential

Answer

Institutional investors must sign NDAs before receiving any financial projections

Question 3

What is the primary purpose of targeting analysis conducted before a roadshow?

Accepted Answer

To determine which institutional investors are most likely to be interested in owning the stock

Answer

To identify which journalists should receive advance copies of the earnings release

Answer

To comply with SEC requirements for pre-filing investor outreach

Answer

To set the IPO price range based on investor demand surveys

Question 4

What does 'book building' refer to in the context of an IPO roadshow?

Accepted Answer

Collecting indications of interest from institutional investors to determine demand and price the offering

Answer

The process of drafting the company's investor presentation deck

Answer

Scheduling management meetings across different investor cities

Answer

Compiling the company's financial history into a bound presentation book

Question 5

Which metric is most commonly used to evaluate the effectiveness of a non-deal roadshow?

Accepted Answer

The number and quality of meetings held relative to targeted investors, plus subsequent ownership changes

Answer

Number of press releases distributed during the roadshow period

Answer

Changes in the company's stock price on the day following each meeting

Answer

The volume of sell-side research reports published within 30 days

Question 6

What is a 'bus tour' in the context of investor relations roadshows?

Accepted Answer

A roadshow format where management travels to multiple investor offices in one city in a single day

Answer

A mandatory shuttle service provided by the SEC between public company hearings

Answer

A group tour of the company's manufacturing facilities offered to retail investors

Answer

An annual shareholder meeting conducted at multiple locations sequentially

Question 7

How should an IR officer handle questions about material non-public information (MNPI) raised during a one-on-one roadshow meeting?

Accepted Answer

Decline to answer and redirect the conversation to publicly available information

Answer

Answer privately since institutional investors are sophisticated enough to treat it confidentially

Answer

Provide the information only to the lead underwriter's banking team after the meeting

Answer

Share the information under a verbal confidentiality agreement with the investor