Series 79 practice questionmediumFollow-On Offerings
In a follow-on offering, which of the following is true regarding the use of a shelf registration statement?
- AAll shares must be sold within 30 days of the initial filing.
- BShares may be offered and sold in one or more takedowns over a period of up to three years.✓ Correct answer
- CA new prospectus must be filed for each takedown, regardless of previous filings.
- DShelf registrations can only be used by first-time issuers.
Explanation
Why B — Shares may be offered and sold in one or more takedowns over a period of up to three years.
A shelf registration allows issuers to conduct one or more takedowns over a three-year period, enhancing flexibility. The trap is thinking shelf registrations require immediate or single-sale use.
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