Preface

• Author: Anita Indira Anand
• Pages: 11-18

xi

Preface

Although the media’s portrayal of an investor is oen a sophis-

ticated business person whose whole career is investing in the cap-

ital markets , this image is not a reect ion of reality. Many investors

are individua l persons who are not tied to a nancial institution.

They may not have the tra ining to understand their investments

and, in turn, the knowledge to act in their own best interest. Cor-

porations that issue securities and nancial adv isers likely have

a better understa nding of the intricacies of the investments than

most of these retail i nvestors, which creates an asymmet ry of infor-

mation bet ween corporations and investor s. This may expl ain why

a common purpose of secur ities legislation is to protect investors,

and why it is crucial to understand the current state of investors’

rights. This book challenges the caveat emptor — or buyer beware —

view of Canada’s capital markets. Although investors should

ideally enhance their nancial literacy to reduce the risk of being

exploited, the regulatory system in Canada also bears the burden

of protecting investors.

This book explores the development of investor rights, the

underlying institutions obligated to ensure their protection, and the

social and economic importance of investor welfare. The chapters

focus on dierent aspects of investor rights and the structures

in place to protect them while attempting to answer the following

1 Securities Act, RSO 1990, c-S.5, s 1.1(a).