Company a Does Not Employ an Independent Stock Transfer Agent,but

question 14

Multiple Choice

Company A does not employ an independent stock transfer agent,but rather issues its own stock and maintains its stock records.When outstanding shares are transferred from one holder to another,the certificate of the selling shareholder should be:

• A)Canceled (generally by perforation)and attached to the certificate book.
• B)Destroyed to prevent fraudulent reissuance.
• C)Retained by the selling shareholder.
• D)Sent to the state's registrar of investment securities.

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Definitions:

Machinery

Physical devices or machines, often powered, that are used in manufacturing processes or to perform various tasks in industries.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower defaults on the repayment terms.

Venture Capital Firms

Companies that invest in startups and early-stage companies with high growth potential in exchange for equity.

Loan

A sum of money borrowed that is expected to be paid back with interest.