Definition of due diligence meeting

meeting conducted by the underwriter of a new offering at which brokers can ask representatives of the issuer questions about the issuer's background and financial reliability and the intended use of the proceeds. Brokers who recommend investment in new offerings without very careful due diligence work may face lawsuits if the investment should go sour later. Although, in itself, the legally required due diligence meeting typically is a perfunctory affair, most companies, recognizing the importance of due diligence, hold informational meetings, often in different regions of the country, at which top management representatives are available to answer questions of securities analysts and institutional investors.