Shelf registration
A) allows firms to file with the SEC 20 days before the issue date.
B) is advantageous primarily to smaller investment banking firms.
C) allows firms to issue securities faster when market conditions are more favorable.
D) more than one of the options are true.

Question

Quizplus · Accepted Answer

Shelf registration allows companies to register with the SEC to issue securities in the future, without having to specify a date. This means that when market conditions are favorable, the company can quickly issue securities without having to go through the lengthy registration process, potentially missing out on favorable conditions. This benefits larger investment banking firms more than smaller ones, as they are typically the ones underwriting major issuances. Shelf registration does not necessarily allow firms to file with the SEC 20 days before the issue date.

Shelf Registration