Quiet Filing: If a company isn't ready to announce their IPO to potential investors they will begin the SEC filing process in a quiet filing. When the details are firmed up, they will print and distribute the preliminary prospectus and begin the roadshow to announce the upcoming IPO to investors.
Quiet Period: Immediately following an IPO, the underwriters are restricted from issuing research reports for up to 25 days. After the end of the quiet period, there may be an increase in trading on the stock if the research reports contain new information that is important to investors.
Red Herring: Some lettering on the front cover of the preliminary prospectus is printed in red so many people refer to it as the "red herring." During presentations to potential investors, company representatives are limited to discussing only information that is contained in the current prospectus.
Registration Statement: In order to receive approval from the SEC to conduct an IPO, a company must file a registration statement. The registration statement details pertinent operational and financial information about the company, the management, and the offering.
Reverse LBO: The term leveraged buyout (LBO) is used when a company is acquired using debt. A reverse LBO is when a company offers shares of stock to reduce their debt load. This strategy will only work if there are public investors willing to invest.
Road Show: When a company is planning an IPO, it will often perform a "road show" to encourage potential investors to participate in the IPO. Due to the popularity of the internet, underwriters are posting upcoming IPO deals online and presenting multimedia "net" road shows to institutional and accredited investors in addition to traditional "in person" roadshows.