LAW 605 Study Guide - Midterm Guide: Ontario Securities Commission, Canadian Securities Administrators, Securities Regulation In The United States
1 Mar 2016
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Securities law doesn"t follow the principle of buyer beware because all information needs to be disclosed, it"s regulated, you want people to make informed decisions. There is a general perception of confidence in the market place. In canada, a distribution of securities cannot be completed without: the filing of a prospectus and a registered dealer to effect the distribution. A prospectus is a comprehensive disclosure document providing detailed information on the issuer"s business and the securities being offered. The requirement of a registered dealer helps ensure that securities are sold by honest, reputable people. Private corporations can avoid prospectus and registration (page 1-2) Capital market market that allows you to buy securities over the counter. Going public go through an ipo to make shares public. Difference between shareholders and going public is that going public will have shares on the stock market. Defendants can escape liability for misrepresentation in a publicly disclosed communication if they prove that:
