When Additional Stock Is Issued to Finance Implementation of Strategy

question 31

True/False

When additional stock is issued to finance implementation of strategy, the existing stockholders' ownership and control of the enterprise are strengthened.

---

Definitions:

Financing Statement

A document that lists the names and addresses of all the parties involved in the transaction, a description of the collateral, and the signature of the debtor.

Perfect

In legal and financial contexts, to complete the necessary legal steps to secure a lien or claim on property as a security interest.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Debtor

An individual or entity that owes money or an obligation to another, the creditor.