due diligence meeting

Definition

Meeting conducted by an underwriter to allow brokers and analysts to ask questions to corporate officials or representatives of the issuer about a new security before it is issued. Typical questions revolve around the issuer's background, the underlying security's financial reliability, and the use of the funds from the sale of the securities. Without such a meeting, a broker or analyst recommending the failed security can be subject to lawsuits. These may be conducted throughout various geographic regions in order to address questions from all affiliated securities analysts and institutional investors from multiple geographic regions.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com