Which, If Any, of the Following Can Be an Eligible

question 113

Multiple Choice

Which, if any, of the following can be an eligible shareholder of an S corporation?

• A)A child, age 10.
• B)A resident alien.
• C)A voting trust.
• D)The estate of a deceased shareholder.
• E)All of the above can own S stock.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied matches the quantity of goods demanded in a market, leading to market stability.

Market Maker

A firm or individual who actively quotes both buy and sell prices for financial instruments, contributing to liquidity and efficiency in the markets.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Bid-ask Spread

The gap between the maximum price a buyer is ready to offer (bid) and the minimum price a seller agrees to sell (ask) for an asset.