Which One of the Following Parties Can Sell Shares of ABC

question 19

Multiple Choice

Which one of the following parties can sell shares of ABC stock in the primary market?

• A)ABC company
• B)Any corporation, other than the ABC Company
• C)Any institutional shareholder
• D)Any private individual shareholder
• E)Only officers and directors of ABC Company

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Definitions:

Agency Relationship

A relationship between two parties in which one party (the agent) agrees to represent or act for another party (the principal).

Restatement (Third)

A reference to the third series of the Restatements of the Law, which are authoritative summaries of common law in the United States, aimed at clarifying, modernizing, and improving the law.

Automatic Termination

A clause within a contract or agreement that causes it to end automatically upon the occurrence of specific conditions.

Illegal Act

An action that is forbidden by law or statute.