Secondary Market Disclosure

A secondary market disclosure is normally brought out by the relevant authorities, who are in-charge of controlling the working of a secondary market. Any secondary market disclosure provides information about the issuing of new governmental securities by the relevant authorities.

Secondary Market Disclosure Laws:
There are certain legislations in place for secondary market disclosures. These laws concern the brokers and dealers. By these laws, they have to provide concrete information regarding the trading of securities to a certain section of investors, as specified by the laws.

There are certain countries, like Canada for example, who are amending laws regarding secondary market disclosure. The amendments would now make it necessary for people to pay for receiving information on secondary market disclosure.
Previously the issuers of secondary market disclosures needed to pay if they manipulated the prospectuses or other securities documents.

Investor Rights:
As provided by the laws, the investors have the right to take legal steps against people in charge for bringing out the secondary market disclosures, under certain circumstances. They may be enumerated as below:

  • Failure to make timely disclosure.
  • Misrepresentations in a much broader group of documents and in public oral statements

According to the laws, the following people may be sued if there is a misrepresentation of the secondary market disclosure:

  • Experts like Auditors, Engineers, Financial Analysts and Lawyers
  • Issuer
  • Promoters
  • Directors
  • Secondary Market Insiders
  • Authorized Officers
  • Investment Fund Managers
  • Control Persons

Secondary Market Disclosure Misrepresentation:
Misrepresentation in the secondary market disclosure is normally made in the central documents. They may be enumerated as below:

  • Financial Statements
  • Prospectuses
  • Annual Information Form
  • Circulars
  • Material Change Documents

In order for a complainant to prove that a relevant official has misrepresented the secondary market disclosure, he has to provide evidence of misrepresentation. There are some other conditions as well, that the complainant needs to prove:
The defendant knew of the misrepresentation
Through action or failure to act, the defendant was guilty of gross misconduct
The defendant deliberately avoided acquiring knowledge of the misrepresentation

More Information About Capital Market
Primary Market Secondary Market Primary Vs Secondary Market
Global Capital Market Capital Market Companies Capital Market Reform
Venture Capital Market Capital Market Transactions Capital Market Line
Capital Market Services Capital Market Securities Capital Market Liberalization
Secondary Infrastructure Fund Capital Market Risk Capital Market Integration
Capital Market Instruments Equity Capital Market Efficient Capital Market
Debt Capital Market Capital Market Consultants Capital Market Conditions
Market Regulation Committee Capital Market Assumptions Capital Market Trends
Capital Market Theory Role Of Capital Market Risk Advisor
Capital Market Regulations Capital Market Investment Capital Market Research

Last Updated on : 22 July 2016

This website is up for sale at $20,000.00. Please contact 9811053538 for further details.