If Sean, a Shareholder Who Dissents to a Corporate Action

question 16

Multiple Choice

If Sean, a shareholder who dissents to a corporate action, is entitled to appraisal remedies, they will be the:

• A) fair value of his shares as of the day the corporation agrees to purchase the shares.
• B) fair value of the shares immediately before the action to which he objects is taken.
• C) average purchase price for the shares during the preceding 30 days.
• D) par value of the shares as set forth in the articles of incorporation..

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired but has not retired, which can be resold or used for other corporate purposes.

Paid-in Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, over and above the par value of the shares.

Par Value

The face value of a bond or stock as stated in the corporate charter, which is the minimum amount the security can be sold for upon its initial offering.

Treasury Stock

Stocks that the company originally issued and then bought back, decreasing the total number of shares available for trading on the public market.