Series 79 practice questionhardFollow-On Offerings
An issuer with an effective automatic shelf registration wishes to conduct an at-the-market follow-on program. Which regulatory requirement must be satisfied?
- AShares must be sold at a fixed price only.
- BThe issuer must be eligible to use Form S-3 for primary offerings.✓ Correct answer
- CThe offering must be limited to insiders only.
- DAll shares must be registered in advance with state securities authorities (Blue Sky).
Explanation
Why B — The issuer must be eligible to use Form S-3 for primary offerings.
At-the-market offerings require S-3 eligibility for primary offerings. Fixed pricing, restricting to insiders, or Blue Sky pre-registration are not requirements under federal law.
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