Shelf registration primarily gives large, strong companies flexibility in the timing of debt or equity issues.

Question

Quizplus · Accepted Answer

Shelf registration allows companies to file a registration statement with the SEC for the sale of securities, which becomes effective automatically when they choose to issue. This gives them flexibility in the timing of debt or equity issues, and large, strong companies are more likely to use this strategy.

Shelf Registration Primarily Gives Large, Strong Companies Flexibility in the Timing