If an Assignment of an Instrument Takes Place, the Assignee

question 24

Multiple Choice

If an assignment of an instrument takes place, the assignee:

• A) has greater rights than the assignor.
• B) has the same rights as the assignor.
• C) is in possession of a negotiable instrument.
• D) is in possession of a nonnegotiable instrument.

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Definitions:

Unrealized Gains

Increases in the value of an asset that has not been sold yet, thus not resulting in actual cash flow or taxable income until the asset is sold.

Trading Securities

Financial instruments such as stocks or bonds that a company holds with the intent of selling them in the short term to profit from price fluctuations.

Broker Commission

A fee paid to a broker for their services, usually a percentage of the transaction value.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.