Explain What Types of Contracts Are Assignable and Name the Types

question 16

Essay

Explain what types of contracts are assignable and name the types of contracts that are not assignable.

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Definitions:

New Share

A unit of stock that has been recently issued to the public by a company, increasing the total number of shares outstanding.

Rights Offering

A form of raising capital where a company offers existing shareholders the right to purchase additional shares at a discounted price before offering them to the public.

Price-earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation metric comparing a company's current share price to its per-share earnings, helping investors assess the value of a stock.

Value Of A Right

The theoretical financial value of a right given to existing shareholders to purchase additional shares at a discount before a new issuance.