The Freestanding Company Limited is the owner of a number of commercial buildings in a large Ontario city. One of the directors, Denise, suggested that the corporation purchase a large apartment building. Another director, Zaida, was the owner of a one-third interest in the building. If the corporation must sell securities to the public to raise the capital, the purpose for which the securities are sold must be set out in the prospectus.

Question

Quizplus · Accepted Answer

When a corporation, such as The Freestanding Company Limited, intends to sell securities to the public to raise capital, it is required by securities regulation to issue a prospectus. This prospectus must disclose key information about the investment, including the purpose for which the capital is being raised, to inform and protect potential investors. This requirement ensures transparency and helps investors make informed decisions.

The Freestanding Company Limited Is the Owner of a Number