A procedure that allows a firm to file a master registration statement with the SEC and then sell an offering of common stock in small increments is known as ____.
A) a Green Shoe option
B) an IPO
C) rule 215
D) a shelf registration

Question

Quizplus · Accepted Answer

A shelf registration allows a company to file a master registration statement with the SEC and then sell an offering of common stock in small increments over a two-year period, without having to repeatedly file registration statements. This allows for more flexibility and efficiency in the company's fundraising efforts. A Green Shoe option is an over-allotment option that allows the underwriters to sell additional shares of an already issued IPO. Rule 215 is a rule that provides the SEC with the authority to require additional information from those registering securities under the Securities Act of 1933. An IPO (Initial Public Offering) is the first time a company offers its shares to the public.

A Procedure That Allows a Firm to File a Master