A public issue of bonds approved by the board of directors (and shareholders if necessary) can be sold when:
A) the registration statement has been filed with the OSC and the syndicate is set.
B) the investment banker's have accepted the offer for sale and have held it for 20 days from announcement.
C) the registration statement has been filed with the OSC, approved and the 20 day waiting period has elapsed.
D) the role of the trustee has been determined and an indenture has been written and signed.

Question

Quizplus · Accepted Answer

The correct answer is C because, in the process of issuing bonds publicly, the registration statement must first be filed with the relevant securities commission (in this case, the OSC - Ontario Securities Commission or a similar regulatory body depending on the jurisdiction). After the registration statement is filed, it must be reviewed and approved by the regulatory body. Following approval, there is typically a mandatory waiting period (often 20 days) before the bonds can be sold to the public. This waiting period allows potential investors to review the registration statement and make informed decisions.

A Public Issue of Bonds Approved by the Board of Directors