Automatic Shelf Registration Refers to the Practice of Allowing Seasoned

question 32

Multiple Choice

Automatic shelf registration refers to the practice of allowing seasoned issuers to file registration statements with the SEC that become effective immediately upon:

• A) the filing of a "base prospectus," enabling efficient stock issue.
• B) the filing of a "base prospectus," enabling efficient debt issue.
• C) the filing of a "base prospectus," enabling efficient stock or debt issue.
• D) the filing of a "red herring prospectus," enabling efficient stock or debt issue.

---

Definitions:

Implied Authority

Authority of an agent that is not expressly granted but is inferred from the acts or the conduct of the principal.

Apparent Authority

A form of authority that a third party reasonably believes an agent has, based on the principal's representations, leading the third party to conclude that the agent is acting within the scope of their authority.

Voidable

A legal term referring to a contract or agreement that may be declared invalid by one of the parties due to issues like fraud or misrepresentation.

Contractual Capacity

The legal ability of an individual or entity to enter into binding contracts, requiring understanding and agreement to the contract's terms.