What is a roadshow in the context of ECM?

In the context of equity capital markets, a roadshow is a series of presentations made by a company seeking to raise capital to potential investors. This process typically occurs when a company is planning an Initial Public Offering (IPO) or a follow-on equity offering. During a roadshow, company executives, often including the CEO and CFO, present the company's business model, financials, growth prospects, and the investment opportunity to institutional investors. The goal is to generate interest and secure commitments from investors before the offering.

The roadshow enables the company to gauge investor sentiment about the perceived value of its shares and adjust its offering price accordingly. It serves as a critical marketing tool to stimulate demand and ultimately influence the success of the capital-raising endeavor. In this context, option B accurately captures the essence of what a roadshow entails within the ECM framework, making it the correct choice.