An option for selling securities reserved for larger firms (MVE $150,000,000) whereby the firm files a master registration statement and then can sell small increments of the stock over the next two years by filing a short-form statement is called _____.
A) SEC registration
B) red herring
C) shelf registration
D) commission registration

Question

An option for selling securities reserved for larger firms (MVE > $150,000,000) whereby the firm files a master registration statement and then can sell small increments of the stock over the next two years by filing a short-form statement is called _____.
A) SEC registration
B) red herring
C) shelf registration
D) commission registration

Quizplus · Accepted Answer

The option described is the definition of a shelf registration. It allows larger firms to file a master registration statement for securities and then sell small increments of the stock over the next two years by filing a short-form statement. SEC registration is a broader term referring to the registration process for securities with the Securities and Exchange Commission. A red herring is a preliminary prospectus that includes most of the information about a security offering but is not yet complete. Commission registration is not a commonly used term in the securities industry.

An Option for Selling Securities Reserved for Larger Firms (MVE