Question

Companies using shelf registration are required to file one registration statement to cover securities to be issued within the next:

A) 6 months
B) 12 months
C) 18 months
D) 24 months

Answer 1

Companies using shelf registration can file one registration statement for securities to be issued within a D)24-month period, allowing for flexibility and market readiness.

Step-by-step explanation:

Companies using shelf registration are required to file one registration statement to cover securities that may be issued within the next D)24 months.

Shelf registration is a provision under Rule 415 of the U.S. Securities and Exchange Commission, which allows a single registration of multiple securities.

This process benefits companies by providing them with the flexibility to go to the market quickly without having to go through the registration process each time during the 24-month period.