Corporations Can Use the Shelf Registration Method for Yankee Bonds,because

question 21

Multiple Choice

Corporations can use the shelf registration method for Yankee bonds,because:

• A) pre-registered securities can be quickly brought to market.
• B) the main registration period is eliminated for up to three years.
• C) investment bankers prefer to handle issues this way.
• D) investment bankers earn more fees in the process.

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Definitions:

Marginal Cost

The extra expense associated with the creation of an additional unit of a product or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, leading to a mismatch in supply and demand.

Demand Curve

A chart that displays the connection between a product's price and the amount of the product buyers are prepared and able to buy at different price levels.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume changes.