The process of shelf-registration is beneficial to the issuing firm because it will reduce the time needed for the firm to take an issue to market.

Question

Quizplus · Accepted Answer

Shelf-registration allows an issuing firm to register securities in advance, without selling them immediately. This reduces the time needed to take an issue to market because the registration process is already underway, and the firm can sell the securities when market conditions are favorable without having to go through the registration process again.

The Process of Shelf-Registration Is Beneficial to the Issuing Firm