Introduction
If you have a private corporation looking to raise capital,
here's a list of common pitfalls to watch for. Securities laws
are a collection of laws, regulations, policy statements,
instruments and rules that regulate, among other things, a
corporation's sale and issuance of "securities".
Securities are broadly defined and can include shares, bonds, and
options. In Canada, each province and territory has its own
securities act and securities regulator. Some securities law
matters have also been agreed upon by some or all provinces and
territories and are drawn up in multilateral instruments and
national instruments.
Fundamentally, securities laws seek to protect the interest of
the investing public and provide financing opportunities for
corporations through capital raising transactions while maintaining
the integrity of the capital markets. However, there is a tendency
to think that securities laws are only applicable to large
corporations or public
