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)A and B.
E)A and C.

Question

Quizplus · Accepted Answer

Shelf registration allows firms to register securities for sale over a two-year period, and is a way of placing issues in the primary market. This method can actually reduce transaction costs compared to traditional registration methods, making option C incorrect. Therefore, the correct answer is D, as both options A and B are true.

Shelf Registration