If an Agent Receives a Gift from a Third Person

question 14

True/False

If an agent receives a gift from a third person with whom he is dealing on behalf of the principal,he can keep it without notifying the principal.

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Definitions:

Seasoned Equity Offering

The process by which a company that is already publicly traded offers additional shares to the market.

Cash Offer

A proposal to buy assets or securities for cash, rather than through the exchange of shares or other forms of compensation.

Rights Equivalent

A representation of the number of rights needed to buy one share at a discounted price during a rights issue, reflecting the value of these rights.

Subscription Price

The set price at which investors can buy shares of a stock or fund before they are offered to the public.