Series 79 practice questionmediumFollow-On Offerings
Which statement best describes a shelf registration under SEC Rule 415?
- AShares must be sold in a single transaction within 30 days of effectiveness
- BIt is only available for IPOs
- CIt allows issuers to offer securities on a delayed or continuous basis up to three years✓ Correct answer
- DIt removes the need for a prospectus
Explanation
Why C — It allows issuers to offer securities on a delayed or continuous basis up to three years
Shelf registrations permit issuers to offer securities over time as market conditions allow, typically up to three years. It is not limited to IPOs and still requires a prospectus for each offering.
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