Company a Does Not Employ an Independent Stock Transfer Agent,but

question 14

Multiple Choice

Company A does not employ an independent stock transfer agent,but rather issues its own stock and maintains its stock records.When outstanding shares are transferred from one holder to another,the certificate of the selling shareholder should be:

• A)Canceled (generally by perforation)and attached to the certificate book.
• B)Destroyed to prevent fraudulent reissuance.
• C)Retained by the selling shareholder.
• D)Sent to the state's registrar of investment securities.

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Definitions:

Existence Of Contract

pertains to the reality or presence of an agreement between two or more parties that is recognized by law.

Lease Contracts

Legal agreements specifying the terms under which one party agrees to rent property owned by another party.

Agree To Terms

The act of formally consenting to the conditions presented in a contractual agreement.

Sales Contract

A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.