Series 79 practice questioneasyProspectus Requirements
What is a 'prospectus supplement' used for in connection with a shelf registration?
- ATo replace the original prospectus entirely
- BTo extend the three-year shelf period
- CTo register additional securities beyond the original shelf amount
- DProvide specific terms of an offering taken off the shelf, such as price, size, and underwriting details✓ Correct answer
Explanation
Why D — Provide specific terms of an offering taken off the shelf, such as price, size, and underwriting details
A prospectus supplement is used in connection with a shelf registration to disclose the specific terms of a particular takedown, including the offering price, number of securities, underwriting discounts, and other deal-specific details. The base prospectus in the shelf registration contains general information about the issuer and types of securities that may be offered. Together, the base prospectus and prospectus supplement form the complete prospectus for a specific offering.
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