Under SEC Rule 415, shelf registration
A) requires that companies registering securities, file a detailed statement for ongoing SEC review and approval.
B) has been used more frequently for equity than debt issues.
C) has allowed smaller investment bankers to compete for more business.
D) allows a corporation to issue securities when market conditions are more advantageous than current conditions.

Question

Quizplus · Accepted Answer

Under SEC Rule 415, shelf registration allows a corporation to issue securities when market conditions are more advantageous than current conditions. This means that the company can file a registration statement with the SEC for a certain amount of securities, but can then wait to sell them at a later time. This gives the company the flexibility to issue securities when market conditions are more favorable, without having to go through the entire registration process again.

Under SEC Rule 415, Shelf Registration