Corporations use the shelf registration method of security sales because:

Question

Quizplus · Accepted Answer

The shelf registration method allows corporations to preregister securities, which can be quickly brought to market without going through the main registration process for up to two years. Therefore, option D, "Both preregistered securities can be quickly brought to market; and the main registration process is eliminated for up to two years," is the best choice. Option A is partially correct, but it doesn't mention that the main registration process is eliminated for up to two years. Options C and E are incorrect because there is no mention of the stock being below investment grade.

Corporations Use the Shelf Registration Method of Security Sales Because