When No Independent Stock Transfer Agent Is Employed and the Corporation

question 42

Multiple Choice

When no independent stock transfer agent is employed and the corporation issues its own stocks and maintains stock records,canceled stock certificates should:

• A)Be defaced to prevent reissuance and attached to their corresponding stubs.
• B)Not be defaced but segregated from other stock.
• C)Be destroyed to prevent fraudulent reissuance.
• D)Be defaced and sent to the Secretary of State.

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Definitions:

Equity Mutual Fund

A type of mutual fund that primarily invests in stocks, seeking to offer returns based on the performance of these equities.

Diversified Equity

An investment strategy that involves spreading investments among various stocks to reduce risk.

Compounded Quarterly

The process of calculating and adding interest to the principal sum of an investment or loan every quarter of a year.

Investment Worth

The value of an investment, taking into account both potential returns and risk level.