Investments, tenth edition

  Shelf Registration 

 

An important innovation in the issuing of securities 

was introduced in 1982 when the SEC approved Rule 

415, which allows firms to register securities and grad-

ually sell them to the public for 2 years following the 

initial registration. Because the securities are already 

 registered, they can be sold on short notice, with little 

additional paperwork. Moreover, they can be sold 

in small amounts without incur-

ring substantial flotation costs. 

The securities are “on the shelf,” 

ready to be issued, which has 

given rise to the term  

shelf 

registration.