The Contract Clause Prevents a State From

question 101

Multiple Choice

The Contract Clause prevents a state from:

• A) making contracts with private individuals.
• B) affecting any agreements between two parties.
• C) changing contracts after they have been made.
• D) contracting with another state.

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Definitions:

Convertible Preferred Stock

A type of preferred stock that offers the holder the option to convert their shares into a predetermined number of common stock shares, usually after a specific date.

Treasury Stock

Shares that were issued and then reacquired by the issuing company, reducing the amount of outstanding stock.

Earnings Per Share

A financial metric used to measure a company's profitability, calculated as net income divided by the number of outstanding shares of its common stock.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits.