When Tong Su Purchased 500 Shares of Preferred Stock in the Vibrates

question 16

Multiple Choice

When Tong Su purchased 500 shares of preferred stock in the Vibrates Corporation, his certificate indicated the stock had a par value of $50 per share. This means that Tong Su:

• A) will never get less than $50 per share when selling his stock.
• B) has shares that are currently worth $50 per share.
• C) may receive dividends based on this value per share.
• D) must receive a $5 dividend each and every year.

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Definitions:

Public Policy

Guidelines and principles that reflect the societal norms and beliefs influencing laws and government actions.

UCC

The Uniform Commercial Code encompasses a detailed framework of laws managing commercial interactions across the United States.

Obligee

A contractual party who agrees to receive something from the other party.

Third-Party Rights

Third-party rights refer to the rights that the law grants to individuals or entities who are not directly involved in a contract but may be affected by it.