Canadian Securities Course (CSC) Practice Exam 2026 - Free CSC Practice Questions and Study Guide

A Greensheet is a document that provides detailed information about a new stock issue to potential investors. By keeping salespeople informed about new stock issues, they can effectively communicate the details and benefits of the stock to clients, thereby increasing the likelihood of generating interest and potential investments. This communication plays a vital role in ensuring that both the salesperson and the investor have access to accurate and up-to-date information, which can ultimately lead to informed investment decisions.

Option A is incorrect because directing capital flows in the stock market is typically done through various market mechanisms and investor decisions, not specifically through Greensheets. Option B is incorrect because the equal distribution of dividends is determined by the company's dividend policy and is not directly related to the use of Greensheets. Option D is incorrect because Greensheets are a tool for providing information and transparency to investors and salespeople, rather than minimizing regulatory oversight on stock trading.