Norman Owns a Large Number of Shares in a Telecommunications

question 30

Multiple Choice

Norman owns a large number of shares in a telecommunications corporation. Despite that, he does not have the right to vote in a meeting held specifically to elect the CEO of the company. In this scenario, Norman is most likely a _____.

• A) general partner
• B) limited partner
• C) common stockholder
• D) preferred stockholder

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Definitions:

Maker

In terms of financial instruments like checks or promissory notes, the maker is the party that promises to pay a certain amount of money.

Bearer

A person who is in possession of a negotiable instrument that is payable to the “bearer” or “cash” or that has been indorsed in blank.

Indorses

To sign the back of a financial document, transferring interest or rights to another party.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and without notice of any defect in title.