When a Debt Is Secured by Property as Collateral and the Debtor

question 76

Multiple Choice

When a debt is secured by property as collateral and the debtor defaults,the creditor may:

• A) take possession of the property and retain it in full satisfaction of the debt or sell it.
• B) take possession of the property and use it until the debtor pays the debt.
• C) not take possession of the property,but must sue the debtor for the balance due.
• D) None of these.

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Definitions:

Share Repurchase Program

A share repurchase program is when a company buys back its own shares from the marketplace, reducing the amount of outstanding stock to increase shareholder value.

Initial Public Offering (IPO)

The method through which a privately-held company goes public by issuing its shares to the general public for the initial time.

Holder-Of-Record Date

The date on which existing shareholders on company records are designated as the recipients of stock rights. Also the date of record.

Tombstone

An advertisement in a financial publication announcing a public offering of securities, containing basic details of the issue.