Registration

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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. New Issue

    A reference to a security that has been registered, issued and ...
  2. Offering Memorandum

    A legal document stating the objectives, risks and terms of investment ...
  3. Letter Of Comment

    A letter from the Securities and Exchange Commission that is ...
  4. Letter Security

    A security that is not registered with the SEC, and therefore ...
  5. Prospectus

    A formal legal document, which is required by and filed with ...
  6. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
Related Articles
  1. Brokers

    Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.
  2. Fundamental Analysis

    Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  3. Investing Basics

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  4. Entrepreneurship

    What does 'going public' mean?

    Going public refers to a private company's initial public offering (IPO), thus becoming a publicly traded and owned entity. Businesses usually go public to raise capital in hopes of expanding; ...
  5. Retirement

    IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  6. Investing Basics

    What is the difference between an IPO and a seasoned issue?

    Learn how companies issue IPO securities when they first go public and seasoned issue shares if they sell more shares in the secondary market.
  7. Trading Strategies

    Is Goldman Sachs Still A Winner?

    Goldman Sachs might not be the best dividend play out there, but there are other reasons you might want to consider it as an investment.
  8. Professionals

    What are the reasons that cause investment bankers to fail in their careers?

    Explore the main reason why investment bankers fail. Learn about the failures of investment firm CEOs Dick Fuld and James Cayne and how their careers were impacted.
  9. Investing Basics

    The 10 Biggest Latin American Banks

    Brazil is home to most of the major banks in Latin America, claiming six of the ten largest financial institutions in the region.
  10. Investing Basics

    What's the Role of an Investment Bank?

    Investment banks provide financial advice to businesses and governments and help them raise capital through the sale of stocks, bonds and other products.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center