Pearson Electric recently registered 180,000 shares of stock under SEC Rule 415. The company plans to sell 100,000 shares this year and the remaining 80,000 shares next year. What type of registration was this

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Business

Asia Pearson

21 February, 20:38

Pearson Electric recently registered 180,000 shares of stock under SEC Rule 415. The company plans to sell 100,000 shares this year and the remaining 80,000 shares next year. What type of registration was this

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Dezi · Answer 1

Shelf registration

Explanation:

Under the Securities and Exchange Commission (SEC) - Rule 415, shelf registration is a procedure for publicly traded companies to register stocks without having to sell them inmediately. With this method, companies have a 2 year period to issue the stocks, and can look for the most favorable time and conditions within that time window to put them in the market.