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Why Are Delivery and Acceptance Both Necessary to Have a Valid

question 19

Essay

Why are delivery and acceptance both necessary to have a valid gift? Explain.


Definitions:

Call Option

A contractual financial agreement that provides the purchaser the option, without being compulsory, to acquire an asset at a predetermined price during a particular timeframe.

Conversion Premium

The extra amount a investor pays over the convertible security's current value to convert it into shares of stock.

Conversion Price

The conversion price is the predetermined price at which a convertible bond or preferred stock can be converted into common shares of the issuing company.

Conversion Ratio

The number of shares an investor receives upon converting a convertible security, like convertible bonds or preferred stock, into common stock.

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