Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Contemporary Canadian Business Law

Business

Quiz 18 :

Securities Regulation

Quiz 18 :

Securities Regulation

search
arrow
Gunnar and his brother Henrik were directors, officers and each 26% shareholders in Evergold Resources, a mining exploration company with claims in Indonesia. Evergold was undertaking exploration on its claims when Henrik's laboratory results on site yielded the existence of a major gold find. The result was a dramatic departure from other samples and seemed to indicate an isolated high-quality vein of gold. Gunnar, in Vancouver, released a press report as to the find. The shares of Evergold began a dramatic run-up in price as a result. Henrik double-checked his work, and the results (though very exceptional) were correct. A further week later, Henrik discovered an anonymous note in his tent at the camp that one of his locally hired laboratory geologists had been involved in a tampering scandal some years before. He telephoned this information to Gunnar, who advised Henrik to thoroughly check the results again. Gunnar immediately sold a third of his own shares in Evergold and reported his trade. The insider trade alarmed the market, which also promptly sold Evergold, depressing its price. The anonymous note proved baseless, and on subsequent announcement of the repeated test confirming the gold strike, Evergold shares rebounded to their previous level. Gunnar was obligated to file a Material Change Report after receipt of the first test results.
Free
True False
Answer:

Answer:

True

arrow
A financial intermediary who, through deceit or fraudulent means, affects the public market price of securities can face a maximum of
Free
Multiple Choice
Answer:

Answer:

D

arrow
What is the Canadian electronic filing and disclosure system called?
Free
Multiple Choice
Answer:

Answer:

A

arrow
Which of the following are not exempt from the requirement of registration as investment advisors?
Multiple Choice
Answer:
arrow
Which of the following is not an insider of a reporting issuer?
Multiple Choice
Answer:
arrow
NewTech Ltd. requires $2 million in capital to finish developing its new solar-powered lighting system. What is the simplest and most likely way to raise the money?
Multiple Choice
Answer:
arrow
When a takeover bid is initiated, the board of directors of the target firm has the legal obligation to its shareholders to
Multiple Choice
Answer:
arrow
The most important exemption from the prospectus requirement are the "Accredited Investors" provisions in the Securities Act. Who are defined as Accredited Investors?
Multiple Choice
Answer:
arrow
Which is not a security, as defined by the Securities Act?
Multiple Choice
Answer:
arrow
A transferred right to vote shares in a reporting issuer is a
Multiple Choice
Answer:
arrow
True, full and plain disclosure is a standard of disclosure set in 1978 by
Multiple Choice
Answer:
arrow
CompuDream Ltd. has been led by its imaginative founder, Frank Foresee, for the past 15 years. Frank is thought to be one of the top corporate leaders of the day. Unfortunately, Frank has just discovered that he has terminal cancer. Does this information have to be disclosed?
Multiple Choice
Answer:
arrow
Gunnar and his brother Henrik were directors, officers and each 26% shareholders in Evergold Resources, a mining exploration company with claims in Indonesia. Evergold was undertaking exploration on its claims when Henrik's laboratory results on site yielded the existence of a major gold find. The result was a dramatic departure from other samples and seemed to indicate an isolated high-quality vein of gold. Gunnar, in Vancouver, released a press report as to the find. The shares of Evergold began a dramatic run-up in price as a result. Henrik double-checked his work, and the results (though very exceptional) were correct. A further week later, Henrik discovered an anonymous note in his tent at the camp that one of his locally hired laboratory geologists had been involved in a tampering scandal some years before. He telephoned this information to Gunnar, who advised Henrik to thoroughly check the results again. Gunnar immediately sold a third of his own shares in Evergold and reported his trade. The insider trade alarmed the market, which also promptly sold Evergold, depressing its price. The anonymous note proved baseless, and on subsequent announcement of the repeated test confirming the gold strike, Evergold shares rebounded to their previous level. Gunnar's trade was in violation of the relevant provincial Securities Act.
True False
Answer:
arrow
A exemption from the prospectus requirement exists for an issuer where
Multiple Choice
Answer:
arrow
Where a single class of voting shares has been issued by a reporting issuer, the provisions of securities regulation relating to takeover bids are first triggered when a bidder holding 1% of those shares bids for a further
Multiple Choice
Answer:
arrow
A firm that chooses to raise funds through a distribution of securities is known as
Multiple Choice
Answer:
arrow
Helen is the receptionist for First Well Ltd., a junior oil and gas company. On Thursday at lunch she told her friend Alice that a takeover bid had arrived by courier that morning. Alice purchased First Well Ltd. stock. How is the share purchase impacted by the Securities Act?
Multiple Choice
Answer:
arrow
A short-form prospectus is available
Multiple Choice
Answer:
arrow
Gunnar and his brother Henrik were directors, officers and each 26% shareholders in Evergold Resources, a mining exploration company with claims in Indonesia. Evergold was undertaking exploration on its claims when Henrik's laboratory results on site yielded the existence of a major gold find. The result was a dramatic departure from other samples and seemed to indicate an isolated high-quality vein of gold. Gunnar, in Vancouver, released a press report as to the find. The shares of Evergold began a dramatic run-up in price as a result. Henrik double-checked his work, and the results (though very exceptional) were correct. A further week later, Henrik discovered an anonymous note in his tent at the camp that one of his locally hired laboratory geologists had been involved in a tampering scandal some years before. He telephoned this information to Gunnar, who advised Henrik to thoroughly check the results again. Gunnar immediately sold a third of his own shares in Evergold and reported his trade. The insider trade alarmed the market, which also promptly sold Evergold, depressing its price. The anonymous note proved baseless, and on subsequent announcement of the repeated test confirming the gold strike, Evergold shares rebounded to their previous level. Gunnar was obligated to file a Material Change Report on receipt of Henrik's telephone call.
True False
Answer:
arrow
When considering insider trading, the "insiders" of a reporting issuer are
Multiple Choice
Answer:
Showing 1 - 20 of 35