Asked by Brittney Kersey on Jul 20, 2024
Verified
To reduce repetitive filing requirements for new issues by large companies, the OSC offers the __________ that allows companies that meet the criteria to produce only a short prospectus when issuing securities.
A) Tombstone.
B) Red herring.
C) Preliminary prospectus.
D) Short form prospectus distribution.
E) Seasoned herring.
Short Form Prospectus Distribution
A simplified process for companies to distribute securities, utilizing a shorter prospectus that provides essential information without excessive detail.
Preliminary Prospectus
An initial document offering securities for sale, disclosing important information but subject to amendment.
- Explain the regulatory requirements and documents involved in the securities issuance process, including prospectuses and registration statements.
Verified Answer
UE
Udeme EbongJul 25, 2024
Final Answer :
D
Explanation :
The OSC (Ontario Securities Commission) offers the "Short Form Prospectus Distribution" system for large companies that meet certain criteria, allowing them to issue securities with only a short prospectus, thus reducing repetitive filing requirements.
Learning Objectives
- Explain the regulatory requirements and documents involved in the securities issuance process, including prospectuses and registration statements.
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