Final answer:
Representations are factual statements by the client about their financial status and investment goals, while Warranties are assurances that indemnify the issuer if those statements are false. Dave's Subscription Agreement with Top Notch Securities will likely require him to affirm his legal and financial eligibility, acknowledge risks, and confirm compliance with investment laws.
Step-by-step explanation:
In a Subscription Agreement with a firm like Top Notch Securities, an exempt market dealer (EMD) in New Brunswick, Representations and Warranties are critical sections that serve to protect both the issuer of the securities and the investor. Representations by Dave, in this context, are statements of fact he confirms to be true regarding his financial situation, investment objectives, and suitability for participation in the exemption offering.
Warranties are assurances given by Dave that indemnify the issuer against any future claims that may arise if his representations are found to be false or misleading. Typical items covered in this section include confirmation of the investor's legal and financial capacity to engage in the transaction, acknowledgment of the risk involved, and compliance with relevant investment laws and regulations.
Therefore, Dave should expect to provide detailed and accurate information regarding his residency, financial status, investment experience, and the suitability of the investment, as well as assurances that he is purchasing the securities for investment purposes and not with a view to distribute them.