Canadian Securities Course (CSC) Level 1 Test 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

When is a prospectus required?

Whenever securities are offered for sale

If the securities are solely sold to institutional investors

If the offering is exclusively through a private placement

When deemed a distribution to the public

A prospectus is required when a distribution of securities is made to the public. A prospectus provides important information about the securities being offered for sale, enabling investors to make informed decisions. In contrast, options B and C refer to specific scenarios where certain exemptions may apply, but a prospectus would still be necessary if the distribution involves the public. Option A is too broad; a prospectus is not always required whenever securities are offered for sale; it depends on the type and nature of the offering.

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