Dog And Pony Show

Loading the player...

DEFINITION of 'Dog And Pony Show'

A colloquial term that generally refers to a presentation or seminar to market new products or services to potential buyers. A dog and pony show, in the financial context, refers to presentations to institutional and retail investors by executives of a company that is issuing securities as an initial public offering or on a secondary basis. It also means presentations by financial institutions to pitch a new product or service. The term is believed to have originated in the late 19th century to describe traveling circuses that featured performing dogs and ponies, and toured rural areas across the United States.

Also known as a “road show.”

BREAKING DOWN 'Dog And Pony Show'

While the term “dog and pony show” has a negative connotation and may be used in a disparaging manner, it fulfills an important function in the capital markets. Known instead by the more respectable term “road show,” these presentations often give brokers, analysts, fund managers and investors an opportunity to meet an issuer’s top management and assess their capabilities firsthand.

Far from being held in decrepit and rundown facilities where the traditional dog and pony shows were often staged, modern-day road shows are generally held in plush ballrooms of luxury hotels and may be attended by hundreds of people. Smaller meetings arranged by the underwriters are also held in private between the company’s management and select institutional investors and high net-worth individuals.

The success or failure of an imminent security offering can often by gauged by the success of its dog and pony show. Road shows by companies that have created a lot of buzz, and where the security offering is highly anticipated, will be very well attended. Such road shows may span a couple of months and are held in numerous venues nationally; larger offerings are often marketed in major overseas financial centers as well. Conversely, a road show by a small company without much brand recognition may only be marketed regionally over a few days.

Depending on their scale and scope, dog and pony shows may cost a company a significant amount of money. However, given their importance as a vital tool for marketing securities, most companies will consider this money well spent.

RELATED TERMS
  1. Road Show

    A presentation by an issuer of securities to potential buyers. ...
  2. Red Herring

    A preliminary prospectus filed by a company with the Securities ...
  3. Reverse Greenshoe Option

    A provision contained in an public offering underwriting agreement ...
  4. Tombstone

    A written advertisement placed by investment bankers in a public ...
  5. Gun Jumping

    1. The illegal practice of soliciting orders to buy a new issue ...
  6. Prospectus

    A formal legal document, which is required by and filed with ...
Related Articles
  1. Term

    What's a Dog and Pony Show?

    A dog and pony show is a presentation that markets new securities as an initial public offering, or securities on a secondary basis.
  2. Investing Basics

    5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.
  3. Investing Basics

    The Road To Creating An IPO

    Through an Initial Public Offering, or IPO, a company raises capital by issuing shares of stock, or equity in a public market. Generally, this refers to when a company issues stock for the first ...
  4. Mutual Funds & ETFs

    Investing In IPO ETFs

    Learn the history, rules and risks of investing in IPO exchange-traded funds.
  5. Investing

    How An IPO Is Valued

    The initial valuation of an IPO can determine the success or failure of a specific stock - but how is that price determined?
  6. Investing Basics

    IPO Lock-Ups Stop Insider Selling

    Ownership plays a key role when companies go public. Find out how.
  7. Options & Futures

    Greenshoe Options: An IPO's Best Friend

    Find out how companies can save or boost their public offering price with these options.
  8. Retirement

    IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  9. Investing Basics

    Inside IPO Roadshows

    Understand more about IPO road shows. Learn the reasons why an IPO road show is important for the success of a company's public offering.
  10. Stock Analysis

    If You Had Invested Right After Berkshire Hathaway's IPO (BRK.A)

    Learn how much you would now have if you had invested right after Berkshire Hathaway's IPO, and find out the classes of shares that you could invest in.
RELATED FAQS
  1. In an IPO, who is a greensheet distributed to and for what purpose?

    One of the most talked about documents that arises in the process of introducing a new issue is the greensheet. This is an ... Read Full Answer >>
  2. Why would a company do a reverse merger instead of an IPO?

    Reverse mergers are often the most expedient and cost-efficient way for private companies that hold shares that are not available ... Read Full Answer >>
  3. What is a "dog and pony" show?

    A dog and pony show, or a road show, is a term used to describe a seminar or forum that has the purpose of introducing new ... Read Full Answer >>
  4. When did Facebook go public? (FB)

    Facebook, Inc. (NASDAQ: FB) went public with its initial public offering (IPO) on May 18, 2012. With a peak market capitalization ... Read Full Answer >>
  5. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  6. What kind of assets can be traded on a secondary market?

    Virtually all types of financial assets and investing instruments are traded on secondary markets, including stocks, bonds, ... Read Full Answer >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center