An Investor Owns 5,000 Shares,which Is 1% of a Corporation's

question 63

Multiple Choice

An investor owns 5,000 shares,which is 1% of a corporation's outstanding stock before a stock repurchase.The investor did not sell any of his stock during the 25,000 share repurchase.Which one of the following statements is correct?

• A) The investor still owns 1% of the corporation.
• B) The stock's price is likely to drop by 5%.
• C) The investor owns more than 1% of the corporation.
• D) The investor now has 5,250 shares.

---

Definitions:

Sick Leave Programs

Policies established by organizations that allow employees to take paid time off from work when they are ill.

Unemployment Insurance Benefits

Financial payments made to individuals who have lost their job through no fault of their own to support them while they seek new employment.

Workers' Compensation Benefits

Payments and benefits provided to employees who are injured or become ill as a direct result of their job.

Eligibility Requirements

Criteria that individuals must meet to qualify for participation in a program or to receive certain benefits.