Prospectus-Exempt Distributions

Prospectus-exempt distributions

A prospectus is a document that provides detailed information about a security and the company offering it. It is typically required before securities can be sold, but there are some exceptions to the rule. The exceptions, called prospectus exemptions, can help a company to raise money without incurring the expense of preparing a prospectus.

The "exempt market" describes a section of Canada’s capital markets where securities can be sold without the protections of a prospectus. Examples of activity in the exempt market include:

• Canadian and foreign companies, both public and private, selling securities to institutional investors and qualified investors
• Canadian and foreign hedge funds and pooled funds selling securities to institutional investors and qualified investors