SIE (Securities Industry Essentials) Practice Exam

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Prepare for the SIE Exam with flashcards and multiple choice questions, each question offers hints and thorough explanations. Gear up for your exam now!

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'Shelf registration' refers to which of the following practices?

Storing unregistered securities for future sale
Registering securities for immediate and future sale
A method of deregistering securities
Reserving securities for employee compensation

The correct answer is: Registering securities for immediate and future sale

Explanation Shelf registration refers to the process of registering securities with the Securities and Exchange Commission (SEC) for future sale to the public. This allows a company to register securities once, and then sell them in smaller amounts over a period of time. Option A is incorrect because "shelf registration" does not refer to storing unregistered securities; rather, it is the act of registering them. Option C is incorrect because it mentions deregistering securities, which is the opposite of registering them. Option D is incorrect because it mentions employee compensation, which is not related to the act of registering securities.