Shelf Registration

Shelf registration is a regulatory process that allows a company to register a new issue of securities with the SEC but delay the actual offering of the shares for up to three years. This allows the company to issue the securities quickly when market conditions are favorable, rather than going through a lengthy registration process at the time of sale. It provides flexibility and helps companies time their capital-raising efforts efficiently.

Example

A company files a shelf registration to raise $500 million in stock over the next two years but only issues $200 million worth of shares initially, keeping the remaining $300 million available for future issuance.