Benefits from Shelf Registration Include All EXCEPT

question 23

Multiple Choice

Benefits from shelf registration include all EXCEPT

• A) greater flexibility in bringing securities to market.
• B) the ability for firms to periodically sell small amounts of securities and raise capital as needed.
• C) a shelf registration statement can cover multiple securities, but there is a penalty if authorized securities are not issued.
• D) costs associated with selling the securities are reduced because only a single registration statement is required.

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Definitions:

Penalty

A punishment imposed for breaking a law, rule, or contract.

Tax-Oriented Leases

Leasing arrangements designed to pass tax advantages from the lessor, who owns the asset, to the lessee, who uses the asset.

Marginal Tax Rates

The percentage of tax applied to your income for each tax bracket in which you qualify, signifying the rate at which your last dollar of income is taxed.

Residual Value

The estimated value of an asset at the end of its useful life, reflecting what it could be sold for or its salvage value.