A(n) ________ Is a Clause in an Instrument That Allows

question 9

Multiple Choice

A(n) ________ is a clause in an instrument that allows the payee or holder to speed up payment of the principal amount of the instrument, plus accrued interest, upon the occurrence of an event.

• A) acceleration clause
• B) prepayment clause
• C) extension clause
• D) forestallment clause

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Definitions:

Rights-On Period

A defined timeframe during which shareholders can purchase additional shares before the public.

Dutch Auction

A type of auction where the auctioneer starts with a high asking price and lowers it until a participant is willing to accept the auctioneer's price, or a predetermined minimum price is reached.

Selling Shares

Selling shares refers to the act of disposing of ownership in a company by selling stock in the financial market, often to realize capital gains or liquidate an investment.

Dutch Auction

A bidding strategy where the auctioneer starts with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.