Underlying Securities
|
Underlying Security |
An underlying security is a security you would acquire if you exercised the right attached to another previously acquired security.
For example, if you previously acquired an option that is exercisable into a common share, the common share is the “underlying security.” You would receive a common share when you exercise the option. You need to report the grant of the option with its corresponding underlying security as an acquisition under options. When you exercise the options, you report a disposition of the options and the equivalent number of underlying securities (code 51). A separate report to reflect the acquisition of the common shares (code 51) must also be filed. |