Why Do Provincial Securities Commissions Deem It Necessary to Require

question 44

Essay

Why do provincial securities commissions deem it necessary to require the issuance of a prospectus prior to security issuance?

---

Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period, with price on the vertical axis and quantity on the horizontal axis.

Fixed Costs

Business expenses that are not affected by changes in the level of goods or services produced over the short term.

Variable Costs

Costs that fluctuate in direct proportion to the level of output or activity in a business.

Breakeven Point

The financial situation where total costs equal total revenues, resulting in neither profit nor loss.