Any Corporation with Less Than $10 Million in Assets and Fewer

question 26

True/False

Any corporation with less than $10 million in assets and fewer than five hundred shareholders must register their securities with the Securi-ties and Exchange Commission.

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Definitions:

Founders' Ownership

The proportion of a company's equity that is owned by its original creators or founders.

Dilution

A reduction in the ownership percentage of a share of stock caused by the issuance of new shares.

Share Price

The market price of a single share of a company's stock, reflecting the value investors place on the company.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis.