A Contract That Makes the Owner of a Security a Part

question 68

Multiple Choice

A contract that makes the owner of a security a part owner of the company that issued the security is known as

• A)a debt security.
• B)an equity security.
• C)a bond.
• D)an option.

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Definitions:

Federal Registration Requirement

Federal Registration Requirement mandates that certain securities and financial transactions must be registered with a governmental body, typically to ensure transparency and protect investors.

State Registration Requirement

Legal stipulation that mandates entities or individuals to register with state authorities for conducting certain activities.

Initial Public Offering

The process by which a private company offers shares to the public for the first time to raise capital.

Securities Act

U.S. legislation enacted in 1933 that regulates the sale of securities to the public, requiring disclosure of significant information.