A Firm Can Avoid the Time Lag Between Registering New

question 94

Multiple Choice

A firm can avoid the time lag between registering new securities with the SEC and actually selling them by using

• A)a proxy.
• B)shelf registration.
• C)a margin call.
• D)preemptive rights.

---

Definitions:

Negotiable Note

A written promise to pay a specified sum of money, which can be transferred to others.

Holder in Due Course

A legal term indicating a person who has acquired a negotiable instrument in good faith for value and without notice of any defects.

Negotiation

The process of discussing an issue between two or more parties with competing interests to reach an agreement or compromise.

Transfer

In legal terms, it refers to the act of moving the ownership, title, or rights of a property or asset from one entity to another.