Watered Shares Result

question 37

Multiple Choice

Watered shares result:

• A)when a purchaser does not pay full market value for the shares.
• B)when a purchaser does pay more than par value for the shares.
• C)in personal liability for the shareholders.
• D)none of the above

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Definitions:

Low Values

Refers to measurements or quantities that are significantly below average or expected levels.

Voltmeter

An instrument used for measuring electrical potential difference between two points in an electric circuit.

Analog Meter

A measuring instrument with a moving pointer that displays readings on a graduated scale, used for measuring physical quantities like voltage or current.

Galvanometers

Instruments used to detect and measure small electric currents by deflection of a pointer in the presence of magnetic fields.