Shelf registration is more often used for:
A) the issue of common stock
B) the issue of convertible securities
C) issue of corporate bonds
D) None of the above

Question

Quizplus · Accepted Answer

Shelf registration is primarily used for the issue of corporate bonds. This allows the company to register their bonds with the Securities and Exchange Commission (SEC) but delay the actual sale of the bonds until a later date. This gives the company flexibility in timing the sale to take advantage of market conditions. Shelf registration is not commonly used for the issue of common stock or convertible securities.

Shelf Registration Is More Often Used For