The enactment of shelf registration is likely to have increased:

Question

Quizplus · Accepted Answer

Shelf registration allows issuers to register securities in advance and sell them over a two-year period while complying with disclosure requirements. This has led to increased competition among underwriters, as they can no longer rely on exclusive agreements with issuers to sell securities, and instead must compete with each other to win business. Therefore, the enactment of shelf registration is likely to have increased competition among underwriters.

The other choices are incorrect because:

A) The cost of issuing new securities may be reduced due to the efficiency gains from shelf registration, as issuers can now quickly access the capital markets without having to go through the registration process each time they want to issue new securities.

B) The interests of venture capitalists are not directly affected by shelf registration, as it applies only to securities offered to the public and not to private placements.

D) The underpricing of securities is not directly affected by shelf registration, as underpricing is largely driven by market demand and the perceived quality of the issuer and the security being offered.

The Enactment of Shelf Registration Is Likely to Have Increased