A Exemption from the Prospectus Requirement Exists for an Issuer

question 23

Multiple Choice

A exemption from the prospectus requirement exists for an issuer where

• A) the purchase is one of a regular series made by an issuer in a security of its own issue.
• B) the purchaser is a bank, buying on its own account.
• C) the purchaser is an individual buying at least $25,000 in market value of one security.
• D) the recipient of the security receives it in satisfaction of a debt owed to it by the issuer.
• E) None of the responses are correct.

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Definitions:

CCA Rate

The annual depreciation rate used under the Canadian tax system to calculate depreciation expense for tax purposes on a depreciable asset.

CCA

An acronym that can stand for Capital Cost Allowance, which is a tax deduction for depreciable property in Canada.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

CCA Rate

Capital Cost Allowance Rate, which is the percentage rate at which businesses in Canada can claim depreciation on tangible capital assets for tax purposes.