Question

In: Finance

What is a shelf registration? What purpose does it serve for bond issuers? How have shelf...

What is a shelf registration? What purpose does it serve for bond issuers? How have shelf registrations impacted investment banks? How have shelf registrations impacted bond issuers? (6 points)

Solutions

Expert Solution

Shelf registration is a process which help in in publicly traded company to register their new stock offerings without having to issue them. It can be registered for 2 years before the actual stock offerings.

It help bond holders by providing a better liquidity and a better sense for estimation of the companies working to the bond holders of the company. It also means that dilution for equity is also around the corner and bondholder need to be more secured.

Shelf registration is impacting the investment banks as when self registration is made it means that and dilution is around the corner and it is not good for the investment banks as they cannot advocate to buy the shares of the company as it is contradictory to their beliefs.

Shelf registration is also impacted bond issuers these are majorly corporates who offers for a self registration indicating that a dilution of shareholder is around the corner and this is good for the bondholders of the company.


Related Solutions

What information is contained in a bond indenture? What purpose does it serve?
What information is contained in a bond indenture? What purpose does it serve?
What purpose does the electoral college serve? Does it still serve as a protection for small...
What purpose does the electoral college serve? Does it still serve as a protection for small states, or is used as a way to control the political process with less than a majority of the votes? Defend your position with facts. As we wrap up your examination of the political process, consider whether we should be limited to just two parties or would we be better served with several different parties? Use information you have learned in this course to...
Why the shelf registration is more common in bond market than in equity market?
Why the shelf registration is more common in bond market than in equity market?
"How is Strategic HR planning part of leadership and what purpose does it serve?"
"How is Strategic HR planning part of leadership and what purpose does it serve?"
1. Describe how is the CPI derived and what purpose does it serve? 2. What is...
1. Describe how is the CPI derived and what purpose does it serve? 2. What is the difference between the CPI and the GDP Deflator? 4. How does inflation affect society and who are the losers and gainers from inflation? 5. Define demand pull inflation and cost push inflation. 6. The salary of the president of the United States in 2000 was $400,000. In 1940, the president's salary was $75,000. If the Consumer Price Index was 8.1 in 1940 and...
What is a pilot cell? What purpose does it serve? How do you set up a...
What is a pilot cell? What purpose does it serve? How do you set up a pilot cell?
What are the traditional categories of bond issuers?
  1. a) What is a bond ? Create an example.               What are the traditional categories of bond issuers?     b) Describe the primary market for (many) bonds.              What is underwriting ?     c) What (where) is the secondary market for bonds ?               Describe a transaction in this market for bonds.     d) What is yield ? Give an example, demonstrating yield versus              coupon rate.
what purpose does the female gametophyte serve in the gymnosperm seed?
what purpose does the female gametophyte serve in the gymnosperm seed?
What purpose does CDKN1A serve in the cell? What role does it play with p53?
What purpose does CDKN1A serve in the cell? What role does it play with p53?
Explain what a call provision enables bond issuers to do. Why would bond issuers exercise a...
Explain what a call provision enables bond issuers to do. Why would bond issuers exercise a call provision? Define a discount bond and a premium bond. Provide examples of each. Describe the relationship between interest rates and bond prices. Describe the differences between a coupon bond and a zero coupon bond.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT