ShmoopTube

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Finance a la shmoop what is shelf registration?

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well there are mussels and oysters and clams...Oh wait, that would be shellfish [Seafood dishes appear]

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registration but it's making me hungry and yeah the real definition of shelf

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registration needs a little horseradish or something just to like you know wake [Woman sniffs horseradish while in bed]

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you up specifically a shelf registration is a kind of public offering where banks

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and other fiduciary fancy institutions can offer new securities in companies

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without going through the myriad dance steps needed for a full-contact naked

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IPO and usually a shelf registration applies in the situation where a company [Man discussing shelf registration in a club]

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in a similar business might be offering the same product but in different

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geographies like a company drilling oil pipelines in the southeast might file to [Oil pipeline appears]

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raise money just from investors in that area while doing a similar offering in

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the northwest in middle America and maybe even out of the country in this

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situation the business dynamics are almost identical in each area because

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like oil is oil right with the one exception of specific regional laws that [Wolves appear from woods]

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may differ like you gotta be really careful about polluting the Everglades

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in Florida and well, lakes in general and some

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people care a lot about that and some people don't like people in the

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northwest are a whole lot more sensitive to polluting arsenic on their moose then

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are the kindly loving citizens of kamchatka in I think that's in eastern [Man appears with moose in Russia]

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Russia in making this kind of shelf offering the filings are essentially in

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piles on a shelf with a few pages changed for each flavor of filing you

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know simplifies things a lot they are then sent out to the relevant investors

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who then do their own assessments as to whether or not they want to buy in well [Woman investor looking at folder]

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the investment system can come in the form of warrants, convertible bonds,

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series of equities in various shapes and forms but companies appreciate the

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ability to file shelf registrations because of the dramatic reduction in

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paper cost lawyer fees and well, filing experiences where the auditors first

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comment is you know turn your head and cough...stop polluting and you won't [Doctor asks patient to turn head and cough]

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cough so much

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