SIE Exam Question 286: Answer and Explanation

Question: 286

A shelf registration is best described as

• A. When an issuer registers securities with the SEC and can sell them for a period of up to 3 years from the effective date based on market conditions.
• B. When a US or non-US company wants to raise capital outside of the United States.
• C. When a private company raises up to $50 million from both accredited and non-accredited investors.
• D. When an issuer offers securities to up to a maximum of 35 unaccredited investors per year and allowed to raise an unlimited amount of capital.

Correct Answer: A

Explanation:

A: (D) describes a type of Regulation D offering. (C) is a Reg A+ offering. (B) is known as Reg S.