A Method of Registering Securities That Allows Firms That Plan

question 39

Multiple Choice

A method of registering securities that allows firms that plan to offer multiple issues of the security over a three-year period to submit one registration statement is known as:

• A) shelf registration.
• B) shelf prospectus.
• C) SEC registration.
• D) originating registration.

---

Definitions:

Express Agency

A relationship where the agent is explicitly given the authority to act on behalf of the principal, often through a written or verbal agreement.

Obligation

An obligation, either ethical or legal, to take a certain action or to avoid taking a particular action.

Terminates

Marks the end or conclusion of something, such as a contract, agreement, or employment.

Fiduciary Duty

An obligation to act in the best interest of another party, emphasizing trust, honesty, and loyalty.