In Order for a Corporation's Stock to Be Bought and Sold

question 113

Multiple Choice

In order for a corporation's stock to be bought and sold on the New York Stock Exchange, the corporation must meet certain requirements. Which one of the following incorrectly states one of those requirements?

• A) A corporation's annual earnings before income taxes must be at least $10 million per year for the last three consecutive he most recent three years.
• B) All of the requirements listed in the other answers are correct.
• C) The market value of its publicly held stock must exceed $25 million.
• D) A corporation must have a total of at least 400 U.S. shareholders and at least 1,100,000 total shares outstanding.
• E) A corporation must have at least $75 million in revenues for the most recent year.

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Definitions:

Transfer Warranty

A legal guarantee assumed by a person who transfers a negotiable instrument, asserting that certain conditions about the instrument are met.

Authentic

Genuine or verified to be original and not a copy or fake.

Negotiable Instrument

A voucher confirming the remittance of a specified financial amount, payable either immediately upon demand or on a scheduled date, with the payer's details included on the document.

Alters

In legal or general context, to change or modify something, such as a document, condition, or situation.