Canadian Securities Course (CSC) Level 1 Practice Exam

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What are the differences between right of withdrawal and right of rescission?

Both are related to employee benefits
One involves stock options, the other cash reserves
Withdrawal is within 2 business days of receipt, rescission is for misrepresentation in the prospectus
Withdrawal is for errors in financial statements, rescission is for pricing errors

The correct answer is: Withdrawal is within 2 business days of receipt, rescission is for misrepresentation in the prospectus

The correct answer is C. Withdrawal is the right to cancel a purchase of securities within two business days of receiving the sale confirmation. On the other hand, rescission is the right to cancel a purchase if there is a material misrepresentation in the prospectus. The key difference lies in the timing and the reason for exercising these rights. Options A, B, and D are incorrect as they do not accurately describe the differences between right of withdrawal and right of rescission in the context of securities transactions.