Shelf registration

PrepNuggets

A type of public offering that allows the issuer to file a single, all-encompassing master prospectus that covers a series of bond issues.

For example, the issuer registers with the regulators on 1st January 2018, an aggregate of $6 million worth of bonds to be issued.  At this instance, the issuer needs $2 million, so it issues $2 million worth of bonds to investors.  

The following year, it needs to raise $3 million.  The issuer need not register another bond issue.  Rather, it can invoke on the existing master prospectus and issue another $3 million to investors.

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