while the SEC was reviewing the registration statement the underwriter was engaged in book-building activities which involved surveying potential investors to construct a schedule of investor demand for the new issue to generate investor interest the preliminary offering processtus or red herring so called because the prospectus was required to have preliminary prospectus on the cover in red ink was printed and offered to potential investors underwriters generally organized a one-or two-week road-show tour during this period the road shows allowed managers