Series 79 practice questioneasyFollow-On Offerings
Which of the following is a key benefit of a shelf registration for follow-on offerings?
- AQuick market access without a new registration filing✓ Correct answer
- BIt eliminates the need for SEC review of any offering under the shelf.
- CIt prevents the issuer from conducting private placements.
- DIt guarantees a fixed price for all future offerings.
Explanation
Why A — Quick market access without a new registration filing
A shelf registration enables issuers to access capital efficiently by using a single registration for multiple future offerings. It does not bypass SEC review altogether or guarantee pricing.
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