This book, now in its second edition, fully covers the framework within which corporate finance deals are done in Canada. The discussion of the law relating to financing practices, financial instruments and financial institutions are integrated with a consideration of some of the topics that comprise modern finance theory.
New financial technologies, originally heralded as a breakthrough in risk management technology, have introduced complex new financial system risks and new legal and regulatory challenges. The international financial crisis that began in the U.S. subprime mortgage market in 2007, for example, is importantly linked to at least two of the innovative financial techniques discussed in this book: securitization and credit default swaps. Other topics include:
- The role of auditors and accountants and the introduction of International Financial Reporting Standards for Canadian public companies
- Basic but important concepts such as NPV (Net Present Value), IRR (Internal Rate of Return) and simple bond and share valuation
- The public offering process
- A review of Canada's developing law of mergers and acquisitions
- Financial derivatives and the changing international derivatives regulatory framework
- The role of Canadian financial institutions
- The evolving nature and role of securities exchanges
The ongoing development of financial techniques presents almost limitless opportunity for creative lawyering. Let this introduction to corporate finance principles help you get a competitive edge in the practice of corporate finance law.