Advanced English Dialogue for Business – Piggyback registration

Listen to a Business English Dialogue about Piggyback registration

Henry: Hi Audrey, have you heard of “piggyback registration” in finance?

Audrey: No, I haven’t. What is it?

Henry: Piggyback registration is when a company registers new securities for public sale alongside securities that are already registered.

Audrey: Why would a company choose piggyback registration?

Henry: It allows the company to streamline the registration process and reduce costs by piggybacking on the registration statement of another offering.

Audrey: Are there any requirements for piggyback registration?

Henry: Yes, the securities being registered must be of the same class and have similar terms as those already registered.

Audrey: How does piggyback registration benefit investors?

Henry: It can provide investors with more options for purchasing securities and access to new investment opportunities without the need for separate registration processes.

Audrey: Can piggyback registration affect the market?

Henry: Yes, it can. Depending on the size and timing of the offering, piggyback registration can impact supply and demand dynamics in the market.

Audrey: Are there any downsides to piggyback registration?

Henry: One potential downside is that piggybacking on another registration statement may delay the registration process for the company’s securities.

Audrey: How common is piggyback registration?

Henry: It’s fairly common, especially among smaller companies or those with limited resources, as it offers a cost-effective and efficient way to register securities for public sale.

Audrey: It seems like piggyback registration can be a useful strategy for companies looking to bring new securities to market.

Henry: Absolutely, it provides a streamlined approach to registration that benefits both companies and investors alike.