Creating Two Classes of Shares, Only One of Which Will

question 6

Multiple Choice

Creating two classes of shares, only one of which will grow in value is called:

• A) probate.
• B) estate freeze.
• C) bequeathing.
• D) share succession.

---

Definitions:

Securities Exchange Act of 1934

A U.S. federal law that regulates the secondary trading of securities (stocks, bonds, and debentures) in the stock market.

Rule 10b-5

A regulation under the SEC that prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

Security Definition

A term referring to measures or protocols implemented to protect against unauthorized access, theft, or damage to information, buildings, or individuals.

Perpetual Existence

A legal concept indicating that a corporation can continue indefinitely, regardless of changes in ownership or management.