MGSC30H3 Chapter 18: Chapter 18 Notes
Document Summary
Securities regulation governs the nature of securities, the method of their distribution and trading, and obligations to disclose information as to their riskiness, in order that investors may make informed purchase decisions. It is an area of provincial responsibility, and seeks to balance the twin needs of capital market efficiency and market integrity. The definition of a security includes any document commonly known as a security, typically evidence of title to or interest in the capital, assets, property, profits, earnings or royalties of any person or company. With a few important exceptions, securities are subject to the obligations of true, full, and plain disclosure within a prospectus, and to continuous disclosure thereafter on a timely basis. Owners of securities are afforded special protections in cases of solicitation of their voting rights, in takeover bids and issuer bids, and in cases of insider trading.
