Shelf registration
A)allows firms to file with the SEC 20 days before the issue date.
B)is advantageous primarily to smaller investment banking firms.
C)allows firms to issue securities when market conditions are more favorable than current conditions.
D)More than one of the options.

Question

Quizplus · Accepted Answer

Shelf registration allows firms to file with the SEC and have their securities registered, but delay the offering and sale of the securities until a later time, when market conditions may be more favorable. This allows for flexibility in timing the issuance of securities. Option A is incorrect because 20 days is the minimum waiting period after filing with the SEC, not the issuance date. Option B is incorrect because shelf registration is beneficial to all investment banking firms, not just smaller ones.

Shelf Registration