What is likely to happen when a shelf prospectus system is adopted for corporations issuing securities?
A)The time for raising capital will increase.
B)The competition among underwriters will increase.
C)The profit of the issuers will decrease.
D)The underwriting expenses will increase.

Question

Quizplus · Accepted Answer

Adopting a shelf prospectus system allows corporations to pre-register securities, enabling them to issue shares quickly when market conditions are favorable. This efficiency can lead to increased competition among underwriters as they vie for the business of these more agile issuers.

What Is Likely to Happen When a Shelf Prospectus System