Registration

What is 'Registration'

1. The process by which a company files required documents with the Securities and Exchange Commission detailing the particulars of a proposed public offering. A company issuing shares must reveal essential facts and detailed information about its business during the registration process, including a business and asset description, a description of the security being offered and the details of that offering, a description and names of the company's management, and the company's financial statements, which have been certified by an accountant working independently of the company.

2. The process by which securities brokers or dealers become legally entitled to sell securities. To have the authority to sell securities, a broker or dealer must file forms and be granted registration with the SEC, must already be a member, or must become a member of a self-regulatory organization such as the NASD, be registered with the state or states in which he or she intends to sell securities if such state laws require him or her to do so, and finally, be or become a member of the Security Investor Protection Corporation.

BREAKING DOWN 'Registration'

1. Companies must now file the required information electronically, so it can be accessible to the public more quickly. Companies must also file a prospectus, which provides a summary of the company's share offering including the size, what the funds raised will be used for, and contact information for the company. Some securities are exempt from the SEC's registration process. These include limited and private offerings and municipal, state and federal security offerings.

2. Not every person working for a securities dealer or broker or an investment bank must be registered in order to conduct business, but the requirements are very stringent, by necessity. If you're thinking about selling securities or working for an investment bank as a career, it's best to check with the relevant authorities in your jurisdiction to ensure that you have fully complied with all relevant laws governing the sale of securities.

RELATED TERMS
  1. SEC Form S-1

    The initial registration form for new securities required by ...
  2. SEC Form SB-2

    A filing with the Securities and Exchange Commission (SEC) required ...
  3. Preliminary Prospectus

    A first draft registration statement filed by a firm prior to ...
  4. SEC Form F-80

    A filing with the Securities and Exchange Commission (SEC) that ...
  5. SEC Form S-3

    A simplified security registration form from the SEC, open to ...
  6. Small Corporate Offering Registration ...

    A form of corporate securities registration designed to reduce ...
Related Articles
  1. Investing Basics

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  2. Popular Resources for Equity Research and Analysis: Chapter 2: The SEC Website

    Second to the company investor relations sites is the direct SEC website at www.sec.gov. Investors can learn quite a bit about the securities industry from the SEC. The forms page, which details ...
  3. Investing Basics

    How A Company Files With The SEC

    Filing with the SEC is not as complicated as you might thing -- just be meticulous about following the steps.
  4. Investing Basics

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  5. Investing Basics

    Understanding The Top SEC filing forms

    It's easier than ever to keep track of your SEC filing status online.
  6. Trading Strategies

    Is Your Broker Legit? 6 Steps to Take

    The Great Recession may have ended, but broker wrongdoing hasn't. Here's how to make sure you don't get stuck with the next Bernie Madoff.
  7. Career Education & Resources

    Laws & Regulations To Know Before Changing the Name of Your Business

    Discover some of the most important steps you need to take after making a decision to change your legally established business name.
  8. Professionals

    Becoming A Registered Investment Advisor

    To become a registered investment advisor requires specific licensing, qualifications and regulations, but the greater freedom may be worth it.
  9. Active Trading

    Data Mining For Investors

    Being an informed investor is extremely important, but where and how do you get the data for your research?
  10. Options & Futures

    Tips For Resolving Disputes With Your Financial Advisor

    Before you blame your advisor for your losses, be sure you know your rights and responsibilities.
RELATED FAQS
  1. How is a penny stock created?

    Understand how penny stocks are issued and regulated, and learn how these sometimes rewarding but always risky investments ... Read Answer >>
  2. How long is the validity period for a Series 63 exam if I have not been registered?

    Find out how registration begins using Series 63 results and how long scores are valid without registration. Learn more about ... Read Answer >>
  3. How do I know if I am buying unregistered securities or stocks?

    All securities, including stocks, bonds and notes, must be registered with the Securities and Exchange Commission (SEC) before ... Read Answer >>
  4. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ... Read Answer >>
  5. According to the USA, it is unlawful for a person to offer to sell a security in ...

    a. the security is registered with Federal Reserve. b. it is a federal covered security, is exempted from registration, or ... Read Answer >>
  6. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center