Shelf registration意思

"Shelf registration" is a term primarily used in the context of securities law and the stock market. It refers to a process by which a company registers a large number of shares with the Securities and Exchange Commission (SEC) in the United States but does not immediately sell them. Instead, the company "shelves" the registration, meaning it is valid for a certain period of time (usually up to two years) during which the company can choose to sell the shares in one or more offerings.

The purpose of shelf registration is to streamline the process of selling securities by allowing companies to sell them as market conditions or their financial needs dictate, without having to go through the full registration process each time. This can save time and money for the company, as they have already provided much of the necessary information to the SEC during the initial registration process.

When a company decides to sell shares from the shelf, it files a prospectus supplement that provides updated information about the specific shares being offered, along with any additional information that has come to light since the original registration. Investors can then purchase the shares according to the terms set forth in the prospectus supplement.

Shelf registration is commonly used by companies that expect to have ongoing capital needs or by companies that want to take advantage of favorable market conditions when they arise. It is also used by companies that want to provide equity compensation to employees, such as through stock options or restricted stock units.