Shelf registration allows firms to file with the SEC 20 days before the issue da

Question

Shelf registration

allows firms to file with the SEC 20 days before the issue date.

is advantageous primarily to smaller investment banking firms.

allows firms to issue securities when market conditions are more favorable than current conditions.

more than one of these are true.

allows firms to file with the SEC 20 days before the issue date.

is advantageous primarily to smaller investment banking firms.

allows firms to issue securities when market conditions are more favorable than current conditions.

more than one of these are true.

Explanation / Answer

Shelf Registration

Shelf registration is a filing on a form S-3 to Securities and Exchange Commission (SEC).under rule 415. It is filed for public offering of securities.

Advantage of shelf registration is that it enables a company to access the market when needed to company or when market conditions are optimal to company. It allows issuing multiple securities under a single registration. So as per this point number (C) is correct.

.

Time limit for shelf offering- The registration will remain valid for a period of three years after its filing. It means company can issue securities in this period of three year.

By this statement it is clear that a company may file SEC 20 days before the issue date. So point number (a) is correct.

Conclusion-

Option no (D) is correct answer.

Conclusion-

Option no (D) is correct answer.

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