Series 79 practice questionhardSEC Registration Statements
Which of the following is a requirement for a company to qualify as a well-known seasoned issuer (WKSI) and use an automatic shelf registration?
- AAny reporting company may use an automatic shelf
- BIssuer must have been public for at least 12 months, regardless of market value
- CIssuer must have at least $700 million in float or have issued $1 billion in registered debt in the past 3 years✓ Correct answer
- DIssuer must only be listed on a national exchange
Explanation
Why C — Issuer must have at least $700 million in float or have issued $1 billion in registered debt in the past 3 years
WKSI status requires a $700 million public float or $1 billion in registered debt issued. It's a common trap to think all public companies qualify, but the eligibility is much more restrictive.
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