Shelf registration
A) is a way of placing issues in the primary market.
B) allows firms to register securities for sale over a two-year period.
C) increases transaction costs to the issuing firm.
D) is a way of placing issues in the primary market and allows firms to register securities for sale over a two-year period.
E) is a way of placing issues in the primary market and increases transaction costs to the issuing firm.

Question

Quizplus · Accepted Answer

Shelf registration is a provision under the Rule 415 of the U.S. Securities and Exchange Commission that allows a single registration of multiple securities, which can then be issued within a two-year period, providing a flexible and efficient way for companies to raise capital as needed. It indeed facilitates placing issues in the primary market and allows for the registration of securities over a two-year period, without necessarily increasing transaction costs.

Shelf Registration