If You Own 200,000 Shares of Stock in a Company

question 115

Multiple Choice

If you own 200,000 shares of stock in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees through stock options,your ownership percentage:

• A)remains the same because the company now has more assets.
• B)falls from 2.5% to 2%.
• C)remains the same because the company now has fewer liabilities.
• D)increases because the company now has more stock outstanding.

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Definitions:

Major Reconstruction

Involves significant rebuilding or making extensive repairs to a structure or infrastructure, usually to restore its usability or to improve its functionality.

Fixtures

Items that are originally personal property but become real property when attached in a permanent manner to real estate.

Furnishings

Items designed to make a space such as a room or building suitable for living or working in, including furniture, floor coverings, and decorations.

Limitations Period

A set period of time within which a legal claim must be filed or be permanently barred.