Which of the following is not true about SEC Rule 415?
A)It permits companies to file one comprehensive registration statement, which outlines the firm's plans for future long-term financing.
B)It allows firms to issue securities when market conditions are appropriate, without further SEC approval.
C)It is consistent with the traditional requirements of the SEC.
D)None of these options

Question

Quizplus · Accepted Answer

SEC Rule 415, also known as shelf registration, is not consistent with traditional requirements of the SEC. It allows firms to file one registration statement and issue securities in multiple offerings over a three-year period without further SEC approval. This was a departure from the traditional method of filing separate registration statements for each offering.

Which of the Following Is Not True About SEC Rule