Chapter 3 (part 4)

Question 1

What are 6 examples of unethical practices?

Answer 1

1. Any action which involves deceiving the public, the buyer or vendor as to the price or value of a company.
2. Creating multiple trades from different firms in a attempt to give the false impression of interest.
3. Entering an agreement to sell and buy back shares in an attempt to manipulate markets.
4. deliberately trying to make the last sale of the day higher than warranted. (window dressing)
5. Making a trade that has no change in ownership in order to mislead public.
6. Confirming a transaction in where no trade has taken place (bucketing)

more on page 3.19

Question 2

What does DNCL stand for?

Answer 2

the do not call list. all advisors must be subscribed to the list.

Question 3

what 5 things must a public company disclose to share holders?

Answer 3

1. Periodic financial statements
2. Insider trading reports
3. annual information form
4. press releases
5. material change

Question 4

what are the 3 parts of the statutory of rights for investors?
* primary market

Answer 4

1. Right of withdrawal - within 2 days can withdraw from trade.
2. Right of rescission - Right to cancel a trade if material facts present are untrue or missing
3. Right of action for damages - If issuer misrepresents information. buyer has right to action.

Question 5

What is proxy solicitation?

Answer 5

When a shareholder cannot attend vote in person. They can fill out forms, giving proxy the right to vote on their behalf.

Question 6

What is 3 things are required in a take-over bid?

Answer 6

1. Take-over bid must be sent to all shareholders
2. Send out a Take-over circular pertaining important information about take-over.
3. Directors circular, giving shareholders board of directors recommendation whether to accept takeover or not.

Question 7

who needs to file a Early warning disclosure?

Answer 7

any shareholder owning more than 10% of shares must file early warning disclosure within 2 days and set out intentions. 3.24

Question 8

Who qualifies as an insider when it pertains to insider trading disclosure? name 4

Answer 8

1. Director or Senior officer
2. Person or company that owns 10% or more of voting shares.
3. Director or Senior officer owning 10% or more of voting shares.
4. A reporting issuer which has purchased, redeemed or acquired shares in the company.

Question 9

How long does an investor or company have to report they have become an insider?

Answer 9

10 days and all records are public