What Is the Effect of the Designation,"Bill Brown,without Recourse

question 18

Multiple Choice

What is the effect of the designation,"Bill Brown,without recourse?"

• A) It has no effect on any subsequent holder.
• B) It has no effect on anyone, including, but not limited to, any subsequent holder.
• C) It means that Bill Brown does not provide any guarantees and that if the instrument is later dishonored, he cannot be held liable.
• D) It means that Bill Brown is providing that any subsequent holder cannot be held liable.
• E) Bill Brown is providing that neither he nor the person who transferred the instrument to him cannot be held further liable to any subsequent holder.

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Definitions:

Marketability

Marketability refers to the ease with which a product or service can be sold or marketed to customers.

Price-Earnings Ratio

A valuation metric that measures a company's current share price relative to its per-share earnings, used to gauge if a stock is under or over-valued.

Common Stock

The stock outstanding when a corporation has issued only one class of stock.

Dividend Yield

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.