Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Shelf Registration

What it is:

A shelf registration is the filing and registration with the Securities and Exchange Commission (SEC) for a security offering that is released to the public market incrementally over a period of time (shelf offering).

How it works (Example):

Under Rule 415, the SEC allows an issuer to register new securities, and then shelve the public offering for up to two years.  

A shelf registration requires that the company file quarterly and annual reports with the SEC.

Why it Matters:

While it is a clear indication of the intention of a company to issue stock, a shelf registration does not affect the number of shares outstanding until the stock is actually sold in the market.