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Shelf Registration

Occasionally, you may find reference to a shelf registration.  A company may use SEC form S-3 to record a registration statement for securities to be offered in the future. The goal of shelf registrations is for securities to be offered as quickly as possible once funds are needed by the issuing company, or market conditions are considered favorable for the sale of company stock.

It is important to understand that filing of a registration statement does not mean that the IPO will occur. First. the registration statement may be amended one or more times before it is effective and even after the registration statement is effective, the company may not pursue the IPO immediately or for that matter ever pursue an IPO.

© 2009 by Michael C. Dennis.  All Rights Reserved