Privity of Contract Refers to the Transfer of Contractual Rights

question 74

True/False

Privity of contract refers to the transfer of contractual rights by an obligee to another party.

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Definitions:

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Market Value

The current price at which an asset or a company can be bought or sold in the open market.

Value Weighted Index

An index in which each constituent is weighted according to its market value, reflecting the performance of the market based on total capitalization.