Corporations Use the Shelf Registration Method of Security Sales Because

question 21

Multiple Choice

Corporations use the shelf registration method of security sales because:

• A) preregistered securities can be quickly brought to market.
• B) the main registration process is eliminated for up to two years.
• C) their stock is below investment grade.
• D) Both preregistered securities can be quickly brought to market; and the main registration process is eliminated for up to two years.
• E) Both the main registration process is eliminated for up to two years; and their stock is below investment gradE.

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Definitions:

Statement Of Cash Flows

A financial statement that highlights the major activities that impact cash flows and, hence, affect the overall cash balance.

Operating Activities

These involve the primary day-to-day activities of a business, such as sales and the purchase of goods or services, which are reflected in its cash flow.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for analysis of trends in assets, liabilities, and equity.

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.