Series 79 practice questionmediumRegistration
Why might a company prefer shelf registration for debt issuance?
- AIt can access the market quickly when rates or investor demand become attractive✓ Correct answer
- BIt eliminates indenture covenants
- CIt permits sales to retail investors only
- DIt prevents any rating agency review
Explanation
Why A — It can access the market quickly when rates or investor demand become attractive
It can access the market quickly when rates or investor demand become attractive Shelf capacity allows issuers to launch rapidly without filing a brand-new registration statement each time. That flexibility is especially valuable in volatile interest-rate markets.
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