Securities laws require a company to issue a news release when there is a material change in its business operations, assets, or ownership. The information in a news release may affect your decision to buy, hold, or sell a company’s securities.
Before acting on any news release, check on SEDAR to make sure the company issued it.
What You Should Focus On
Focus on the change in the company’s business, operations, or assets under discussion. This is the company’s view of things, so you may want to check the information with an independent source.
- Do you understand the material change or proposed transaction the company is discussing?
- Do you understand the impact the material change will have on the company?
- Do you think the change or proposed transaction will benefit the company?
If You Need Help, Consider These Options
- Ask your advisor to discuss the proposed change with you.
- Ask another trusted professional (for example, your lawyer or accountant) to discuss the proposed change with you. Call the company and ask for a further explanation.
To learn more about the company, you may also want to review its annual report.