The enactment of shelf registration is likely to have increased:

Question

Quizplus · Accepted Answer

Shelf registration allows companies to register securities with the Securities and Exchange Commission (SEC) for future use, which creates a competitive environment for underwriters. Underwriters compete to offer the best terms and pricing to companies, which should lead to lower costs for issuing new securities. This increased competition among underwriters is likely to have increased due to the enactment of shelf registration. Therefore, the correct answer is C. The enactment of shelf registration is not likely to increase the cost of issuing new securities (A) or the profits of venture capitalists (B). Additionally, there is no clear connection between shelf registration and the underpricing of securities (D).

The Enactment of Shelf Registration Is Likely to Have Increased