SEC Rule 415 is also known as the shelf registration rule. It allows firms to register securities and then wait up to two years before selling them, giving them flexibility in timing the release of securities to the market. This can be a helpful tool for companies to manage their financing needs and respond to market conditions. The other choices presented (A, B, C) do not accurately describe SEC Rule 415.

Solved

SEC Rule 415

Question 33

Multiple Choice

SEC Rule 415

A) fixes the fees that may be charged by underwriters.
B) requires underwriters to invest their own funds in the firms whose securities they are underwriting.
C) eliminates the requirement that short-term securities be underwritten.
D) allows firms to wait as long as two years before selling a newly registered security.

Correct Answer: