Which of the following observations is true of the shelf registration rule?
A)It is an option available to all listed companies.
B)Shelf registration is limited to 25 percent of the company's currently outstanding stock.
C)It allows private placements of an unlimited amount of securities.
D)It allows large companies to select the optimal time to sell their stock.

Question

Quizplus · Accepted Answer

The shelf registration rule allows large companies to select the optimal time to sell their stock. Option A is incorrect, as shelf registration is not an option available to all listed companies, but only to certain issuers that meet the requirements. Option B is incorrect, as shelf registration does not have a limit on the percentage of currently outstanding stock. Option C is incorrect, as private placements still have limitations and are subject to certain requirements under the rule.

Which of the Following Observations Is True of the Shelf