The advantage of the shelf registration is that _______________.
A) The firm can use their red herring prospectus as a substitute for the master registration statement.
B) The firm can get stocks into the market quickly if the firm feels conditions are right without the time lag.
C) The firm can bypass the lengthy SEC process.
D) None of these.

Question

Quizplus · Accepted Answer

The advantage of the shelf registration is that the firm can get stocks into the market quickly if the firm feels conditions are right without the time lag. Option A is incorrect because a red herring prospectus is not a substitute for the master registration statement. Option C is incorrect because the firm still needs to file a registration statement with the SEC, but with the shelf registration process, the wait time is minimized. Option D is incorrect because option B is the correct answer.

The Advantage of the Shelf Registration Is That _______________