Legal Relations Chapter 15

  1. Bond
    A document evidencing a debt owed by the corporation, often used to refer to a secured debt.
  2. Debenture
    A document evidencing a debt owed by the corporation, often used to refer to a unsecured debt.
  3. Insider
    A person whose relationship with the issuer of securities is such that they are likely to have access to relevant material information concerning the issuer that is not known to the public.
  4. What is a Security?
    Shares and bonds issued by a corporation.
  5. Share Structure
    • The shares that a corporation is permitted to issue by its constitution. May have a combination of various rights & privileges:
    • voting rights
    • financial rights
    • preference rights
    • cumulative rights
    • redemption rights
  6. Share
    Represents a ownership interest in the issuing corporation
  7. Widely Held Shares
    Shares are normally traded on the stock exchange
  8. Closely Held
    Does not sell share to the public
  9. Nuans Report
    Document that shows the result of a search for a business name to insure the name is not already in use.
  10. The Process of Incorporation
    • Articles of incorporation
    • Notice of registered office
    • Notice of directors
    • Nuans report
    • Filing fee payable to the Receiver General
  11. Securities Legislation
    • mechanism for transferring securities
    • investors have adequate information to make informed decisions
    • Ensures public has confidence in the market place
    • regulates trading securities
    • remove or punishes rule breakers
  12. Tippee
    A person who acquires material information
Author
Chas
ID
338871
Card Set
Legal Relations Chapter 15
Description
Legal Relations Chapter 15
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