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Securities Registration Post-Effective Period

Cite this article as: Jason Mance Gordon, "Securities Registration Post-Effective Period," in The Business Professor, updated July 14, 2016, last accessed April 9, 2020, https://thebusinessprofessor.com/knowledge-base/securities-registration-post-effective-period/.

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What is an issuer allowed to do during the “Post-Effective Period”?

During the Post-Effective Period, the issuer can begin selling securities. The issuer must still deliver a statutorily prescribed prospectus to offerees. Additional rules benefiting WKSIs exist during this stage that allow for an automatic “shelf registration”. Shelf registration is the pre-registration of securities that will not be issued until a later date. This can be useful when the business plans for multiple stages of funding over a period of time.

  • Discussion: Why do you think the securities laws are less restrictive on communications by issuers following the post-effective period? Should there be any continued regulation (beyond the requirement to provide purchasers with a prospectus) following the post-effective date?

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