The Use of Stock Certificates, Compared to Book-Entry Systems, Is

question 85

True/False

The use of stock certificates, compared to book-entry systems, is on the rise due, in part, to increased computer fraud.

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Definitions:

Board of Director's Approval

Formal sanction or consent given by a company's board for specific actions or decisions.

Assets

Economic resources or valuable items owned by an individual or business, capable of being converted into cash.

Dissenting Shareholder

A shareholder who disagrees with a corporate decision and is granted certain rights, like the right to be bought out under specific conditions.

Appraisal Right

A dissenting shareholder’s right to have his or her shares appraised and to receive monetary compensation from the corporation for their value.