BL Lumber just authorized 5,000 new shares that is the number of shares they expect to sell over the next 2 years.These shares will be sold as,and if,funds are needed.This situation best describes which one of the following terms?

Question

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A shelf offering is a Securities and Exchange Commission (SEC) provision that allows an issuer to register a new issue of securities without selling the entire issue at once. The issuer can sell portions of the issue over a three-year period without re-registering the securities or reporting each sale to the SEC. This approach allows the issuer to raise capital as needed over time, fitting the description given in the question.

BL Lumber Just Authorized 5,000 New Shares That Is the Number