Without the Prior Approval of Shareholders a Company Is Restricted

question 6

Multiple Choice

Without the prior approval of shareholders a company is restricted to private placements of shares,in any one year,of no more than:

• A)5% of existing capital
• B)10% of existing capital
• C)15% of existing capital
• D)20% of existing capital.

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Definitions:

Dividends

Financial rewards given by a company to its shareholders, predominantly coming from the company's profits.

Stock Valuation

The process of determining the intrinsic value of a company’s shares based on earnings, dividends, and other economic indicators.

Publicly Traded

A designation for companies whose shares are bought and sold on the open market through a stock exchange, allowing for broad public investment.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with dividend payments that are prioritized over common stock dividends.