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Qualifying Transaction

What is 'Qualifying Transaction'

A type of transaction that occurs when a company issues public stock in Canada. A qualifying transaction occurs when a qualified Capital Pool Company (CPC) purchases all of the outstanding shares of a privately-owned company from the current shareholders. The private company then becomes a fully-owned subsidiary of the CPC.

Explaining 'Qualifying Transaction'

Because the capital pool company will, by nature, have no business of its own, whatever line of trade that the private company engages in becomes the business of the CPC. Qualifying transactions usually formally begin when the shareholders and the CPC create a Letter of Intent (LOI) outlining the terms of the agreement. Usually, the CPC must include a plan for financing the transaction in every LOI.


Further Reading


The economics of Islamic finance and securitization
jsf.pm-research.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Reduction of financial instrument volatilityReduction of financial instrument volatility
patents.google.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Reporting on financial derivatives–A Law and Economics perspectiveReporting on financial derivatives–A Law and Economics perspective
link.springer.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Bypassing the financial growth cycle: Evidence from capital pool companiesBypassing the financial growth cycle: Evidence from capital pool companies
www.sciencedirect.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Finance in the Courtroom: Appraising Its Growing PainsFinance in the Courtroom: Appraising Its Growing Pains
papers.ssrn.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Money in the bank: Transaction costs and the economic organization of marriageMoney in the bank: Transaction costs and the economic organization of marriage
www.jstor.org [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Entrepreneurial Finance and Economic Growth: A Canadian OverviewEntrepreneurial Finance and Economic Growth: A Canadian Overview
papers.ssrn.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Reduction of financial instrument volatilityReduction of financial instrument volatility
patents.google.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …

Financial derivatives in corporate tax avoidance: A conceptual perspectiveFinancial derivatives in corporate tax avoidance: A conceptual perspective
meridian.allenpress.com [PDF]
… Since lending transactions under Islamic law are based on the concept of asset backing and specific credit participation in identified business risk, it … The Economics of Islamic … the costs from the use of the asset have to be defrayed by the lessee.12,13 If the ijarah transaction is a …


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