What Is Shelf Registration

question 10

Multiple Choice

What is shelf registration?

• A) A procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation.
• B) A procedure that allows large companies to register securities with the SEC and then sell them over a period of two years without registering again within that period.
• C) A method of filing Form 10-K with the SEC.
• D) The registration of mutual funds that engage in investing and trading securities.
• E) The registration of securities issued in connection with business combination transactions.

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Definitions:

Administrative Expenses

Costs associated with the general management and administration of a business, such as salaries of executive personnel, legal and accounting fees.

Operating Capacity

The maximum output that a company can produce under normal conditions over a specific period.

Differential Cost

Differential cost, also known as incremental cost, is the difference in total cost that will result from selecting one option over another in decision-making processes.

Unused Capacity

Represents the available production or service facility capability that is not being utilized to its full potential.