Words or Terms in Contracts That Are Subject to More

question 43

True/False

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.​

---

Definitions:

Treasury Stock Transaction

Refers to the buying back or reacquisition of previously sold shares by the issuing company, reducing the amount of outstanding stock on the open market.

Additional Paid-in Capital

The amount of money investors pay above the par value of a stock.

Retirement of Shares

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding shares.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; represents ownership equity in a firm.