Which of the Following Is Necessary to Be Considered a Good

question 50

Multiple Choice

Which of the following is necessary to be considered a good faith purchaser?

• A) The purchaser must act honestly.
• B) The purchaser must give value for the item.
• C) The purchaser must take the goods without notice or knowledge of any defect in the title of the transferor.
• D) All of these are necessary.

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Definitions:

Lock-up Restrictions

Contractual limitations on the sale of securities, typically imposed on company insiders following an initial public offering.

Less Liquid

A term describing an asset that cannot be quickly sold or converted into cash without significant loss of value.

More Liquid

Describes an asset or market that allows for assets to be bought or sold quickly without significantly affecting the asset's price.

Front-end Commission

A fee paid when purchasing shares of a mutual fund, upfront, which reduces the amount invested from the start.