Definition - What does Road Show mean?
A road show is a series of marketing events comprised of business meetings and conferences. During a road show, which is organized across different geographic regions and cities, the top management teams of a firm offering securities talk to the potential buyers as well as opinion makers such as analysts and brokers.
Road shows are an important part of an initial public offering (IPO) process because they enable favorable opinions, making for the successful closing of the offer. Sometimes no-deal road shows are also organized to communicate with the public and the opinion makers in order to improve public perception about a company or a group of companies when no sale of securities or other assets is planned.
Divestopedia explains Road Show
Most road shows are marathon, week-long business presentations showcasing the profitability and other favorable aspects of the firm as well as offering securities or other assets, conducted across multiple locations. When a privately held company plans to go public by issuing stock to the public or a public sector undertaking plans to issue shares to the public for raising additional capital, road shows are planned in order to enthuse and influence likely investors, analysts and brokers. The management team of such firms travel to important cities to make presentations to opinion makers and potential investors as well as groups of brokers, fund managers and news media.