LAW 204 Lecture Notes - Lecture 9: The Need, Insider Trading, Accredited Investor
9 Mar 2021
School
Department
Course
Professor
Document Summary
The need to raise capital: the corporate structure allows for impressive growth in the way unincorporated structures cannot, corporations often wish to take on more money ( capital ) because: Issuing shares (selling equity: borrowing (taking on debt, this module- equity financing, simply, equity financing means a corporation raises money by selling ownership shares; thus, the investors will become shareholders. Equity financing: the issuance of shares invokes 2 types of laws, corporations laws (cbca, obca, securities laws, small private companies can issue shares to investors through straight forward agreements and can avoid the impact of these laws. Private company equity financing: private corporation enters into a subscription agreement with investor, directors approve the share issuance, shares are issues and investor"s name included on shareholder register, [existing shareholders" rights are diluted] Going public- securities law: public issuance of securities (shares) is subject to corporate law statutes, public share issuance is subject to securities statutes (provincial laws such as the.
