Shelf Registration

question 16

Multiple Choice

Shelf registration

• A)allows the shelves in a set of bookshelves to remain level.
• B)allows an issuer to preregister a securities issue,and then "shelve" the securities for later sale.
• C)allows an investment bank to increase the fees they charge by charging for storage of the "shelved" securities.
• D)eliminates the information disclosure that many foreign firms found objectionable in the foreign bond market.

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Definitions:

Capital Asset

Long-term property or investment held by a business or individual, intended for use or investment purposes rather than for sale.

Fair Value Increments

Adjustments made to the book value of assets and liabilities to reflect their current market value during acquisition accounting.

Depreciable Assets

Assets whose cost is allocated over their useful lives through depreciation, typically tangible assets like machinery, buildings, and equipment.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.