Management's First Step in Any Issue of Securities to the Public

question 37

Multiple Choice

Management's first step in any issue of securities to the public is:

• A) to file a registration form with the OSC.
• B) to distribute copies of the preliminary prospectus.
• C) to distribute copies of the final prospectus.
• D) to obtain approval from the board of directors.
• E) to prepare the tombstone advertisement.

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Definitions:

Average Annual Income

The average amount of money earned per year over a specified period, often used to assess financial stability.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated by dividing the average annual accounting profit by the initial investment cost.

Cash Payback Method

An investment appraisal technique that calculates the time needed to recoup the cost of an investment through cash flows.

Present Values

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.