A:

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 products or financial securities issues to potential investors or buyers. A dog and pony show is usually hosted by investment banks and firms that have products or securities to sell.

When a company wants to issue an IPO or needs investments in order to proceed with a new product, the first thing it does is hire an investment bank or firm to do the underwriting. These investment entities then seek investors for the securities and hold dog and pony shows to convince potential investors of the worthiness of the products or securities.

For more on this topic, read The Murky Waters of the IPO Market and IPO Basics Introduction.

This question was answered by Chizoba Morah.

RELATED FAQS
  1. What are the "Dogs of the Dow"?

    The Dow Jones Industrial Average (DJIA) is an index of 30 of the most significant, mature and respected companies in the ... Read Answer >>
  2. What's the difference between primary and secondary capital markets?

    In the primary market, investors buy securities directly from the company issuing them, while in the secondary market, investors ... Read Answer >>
  3. Do underwriters make guarantees to sell an entire IPO issue?

    Underwriters represent the group of representatives from an investment bank whose main responsibility is to complete the ... Read Answer >>
Related Articles
  1. Investing

    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

    Don't Dump On The Dogs

    Just because a stock is in a slump doesn't mean it's time to sell. Some value managers make a living by investing in "dogs."
  3. Investing

    Burger King's New Hot Dogs:Vertical Integration Genius

    Burger King is moving beyond burgers into hot dogs. Here is why this is a smart move.
  4. Insights

    What is a Complement?

    A good or service that’s used in conjunction with another good or service is a complement.
  5. Personal Finance

    5 One-Of-A-Kind Jobs

    From dog show judge to money designer, these jobs require a great deal of expertise and offer unique employment opportunities.
  6. Investing

    What's a Road Show?

    Road shows are an impactful marketing tool that can drum up investor interest. And they’re crucial whenever a company makes an initial public offering.
  7. Insights

    Calculating the Marginal Rate of Substitution

    The marginal rate of substitution determines how much of one good a consumer will give up to obtain extra units of another good.
  8. Insights

    Got Money to Waste? Spend It on Spoiling Your Pet

    Have some extra cash to burn? Spend it on pampering your pet.
  9. Investing

    Explaining the Central Limit Theorem

    Central limit theorem is a fundamental concept in probability theory.
  10. Investing

    Are Investing Seminars Worth It?

    A look at two types of seminars and what each has to offer.
RELATED TERMS
  1. Dog Eat Dog

    Intense competition in a market. Dog eat dog competition most ...
  2. Cats And Dogs

    A slang term referring to speculative stocks that have short ...
  3. Dog

    One of the four categories or quadrants of the BCG Growth-Share ...
  4. Bird Dog

    A real estate investing term that refers to someone who spends ...
  5. Eat Your Own Dog Food

    A colloquialism that describes a company using its own products ...
  6. Dogs Of The Dow

    An investing strategy that consists of buying the 10 DJIA stocks ...
Hot Definitions
  1. IRR Rule

    A measure for evaluating whether to proceed with a project or investment. The IRR rule states that if the internal rate of ...
  2. Short Covering

    Short covering is buying back borrowed securities in order to close an open short position.
  3. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  4. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  5. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  6. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
Trading Center