CSA Staff Notice 55-316 Questions and Answers on Insider Reporting and SEDI
3 Issuer Information
3.2 Issuer Profile Supplement
Section 3.2.9

Are Shares And Options The Same Thing?

No. An option is the right to buy or sell a specific security, such as a common share, at a predetermined price within a specified time. A share is a security that represents a residual ownership interest in a company and generally carries voting privileges.

The two are often linked. For example, in the case of an option to acquire shares in a reporting issuer, you must file separate insider reports for each of the following if they occur while you are reporting insider:

  • the acquisition (i.e., grant) of an option;
  • the exercise of an option;
  • the acquisition of the underlying shares;
  • any subsequent sale or transfer of the shares.