Which type of firm is qualified to issue new stock under the short-form prospectus distribution?
A)well-established large corporations
B)new start-up small companies
C)government subsidiaries
D)Canadian-controlled private companies

Question

Quizplus · Accepted Answer

Well-established large corporations with an established public presence and financial history are more likely to meet the eligibility criteria for using a short-form prospectus. These firms may include those that have been reporting under the Securities Act for at least 12 months and have a market capitalization above a certain threshold. New start-up small companies may not have the financial history or public profile necessary to meet these requirements, while government subsidiaries and Canadian-controlled private companies may not have access to the public markets in the same way as larger corporations.

Which Type of Firm Is Qualified to Issue New Stock