A large wellknown public company that frequently issues secu

A large, well-known public company that frequently issues securities will often file a master registration statement with the SEC and then update it with a short-form statement just prior to each individual offering. This procedure is known as (a) underwritten arrangement (b) shelf registration (c) best effort arrangement (d) seasoned offering

Solution

Answer: Option \"b\" is correct that says, \"Shelf registration\".

Shelf registration is a process through which public companies can register new stock offering without issuing them immediately. Sometimes when market conditions are not good or there is down turn in economy and slow down in the market, if any company wants to come up with new offering, that time investors may not invest into that company so company keeps this practice on hold and fulfills all the formalities with SEC and whenever market becomes favourable, that company goes public immediately.