Once approved with a shelf prospectus,firms have the right to sell new stocks anytime up to a 25-month period by extending investors with a prospectus supplement.

Question

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Once a shelf prospectus is approved, firms can sell new stocks anytime within a 25-month period by providing investors with a prospectus supplement. This allows for flexibility in financing options for the firm without needing to file a new prospectus every time they want to issue new securities.

Once Approved with a Shelf Prospectus,firms Have the Right to Sell