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

Question

Quizplus · Accepted Answer

The short-form prospectus distribution is meant for well-established large corporations that have already issued securities before and have a good track record with the securities regulatory authorities. They are exempted from some of the requirements of a long-form prospectus, which makes the process quicker and less expensive for them. New start-up small companies and government subsidiaries are not eligible for this type of distribution.

Which Type of Firm Is Qualified to Issue New Stock