Which of the Following Observations Is True of the Shelf

question 39

Multiple Choice

Which of the following observations is true of the shelf registration rule?

• A)It is an option available to all listed companies.
• B)Shelf registration is limited to 25 percent of the company's currently outstanding stock.
• C)It allows private placements of an unlimited amount of securities.
• D)It allows large companies to select the optimal time to sell their stock.

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Definitions:

Present Value

The contemporary valuation of future monetary sums or cash flow chains, determined by a designated rate of return.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Time Value

The principle that having money now is more valuable than the same sum in the future because of its ability to earn more over time.

Money

A medium of exchange that facilitates the transfer of goods and services and serves as a measure of value and a store of wealth.