Shelf registrations allow issuers to respond more quickly to market conditions,but the provision allowing it does not apply to all companies.

Question

Quizplus · Accepted Answer

This statement is true. Shelf registrations allow issuers to have a pre-approved shelf or blanket registration statement on file with the SEC that can be used to sell securities in the future without going through the entire registration process again, which can be time-consuming and costly. However, not all companies are eligible to use shelf registrations, and there are certain requirements and conditions that must be met in order to do so.

Shelf Registrations Allow Issuers to Respond More Quickly to Market