🏦LTB
← Series 79: Underwriting & New Financing
Series 79 practice questioneasyShelf Registration

What is the maximum period a shelf registration statement remains effective under Rule 415?

  1. AOne year from the effective date
  2. BThree years from the initial effective date✓ Correct answer
  3. CFive years from the initial effective date
  4. DThere is no expiration; it remains effective indefinitely
Explanation

Why B — Three years from the initial effective date

Under Rule 415, a shelf registration statement generally remains effective for three years from its initial effective date. After three years, the issuer must file a new shelf registration statement if it wishes to continue having the ability to conduct takedowns. Well-known seasoned issuers enjoy automatic effectiveness of new shelf registrations, making the renewal process seamless. The three-year limit ensures that the information in the base prospectus is periodically refreshed through the filing of a new registration statement.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 79 freeSeries 79 exam guide
Related Underwriting & New Financing questions