Gerald Files a Bankruptcy Petition

question 38

Multiple Choice

Gerald files a bankruptcy petition.The resulting automatic stay will apply to Gerald's

• A)spousal debts.
• B)child-support debts.
• C)spousal-support debts.
• D)car payment debts.

---

Definitions:

Par Preferred Stock

Preferred shares of stock issued at a specified nominal value, known as the par value.

Common Stock Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy a company’s common stock at a specified price within a certain time frame.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Additional Paid-in Capital

The amount paid by investors for shares above the par value, reflecting excess funds received over the stated capital.