What is an IPORoadshow?
This is when investment bankers representing a private company about to go public travel the country to meet with investors so they can line up buyers for the new shares the company will issue.
Okay, imagine you want to make this big feast of Italian food for your family, but before you commit your money to all the pasta and the sauce and the wine and all the good stuff, you need to see who's interested.
You need to line up buyers for the food before you commit.
Who wants italian food? You know I make awesome italian food.
Everyone's in? Good, I'll go shopping and spend my money.
Companies issue new shares to public investors because they need to raise money to invest in the next leg of its journey as a company. But it's not gong to just blindly throw shares at the market and hope there's demand for equity in the company.
Need to hear the rest to fully understand? Watch the video above.
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