Suppose You Own Shares of 3For Ltd

question 71

Multiple Choice

Suppose you own shares of 3For Ltd., which has just announced a 3-for-1 share split. Immediately after the announcement, the price of the company's shares rose by 5 per cent. You don't expect any new information about the company until after the share split. Ignoring any discounting for time, if you intend to sell your shares soon, you should:

• A) sell the shares now-the single share you have now is likely to be worth more than the three shares you'll have after the split.
• B) sell the shares after the split-typically, the marker reacts positively to share splits. The three shares you'll have after the split will be worth more than the single share you have now.
• C) sell the shares now-the shares are likely to be more liquid before the split when there are fewer shares.
• D) It doesn't matter when the shares are sold. If there is no new information about the shares, then the value of three shares after the split should be the same as the value of the single share you hold now.

Analyze the role of ratification in binding principals to agents' agreements.

Grasp the legal requirements for providing notice of termination of an agency relationship.

Recognize the exceptions when principals can be held liable for the acts of independent contractors.

Understand the definitions and distinctions between various types of power of attorney.

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Definitions:

Macrosystem

The most encompassing layer in Bronfenbrenner's Ecological Systems Theory, reflecting the overarching cultural or societal context that affects an individual's development.

Exosystem

A concept in ecological systems theory referring to the larger societal conditions that affect a person's immediate environment but with which the individual does not interact directly.

Chronosystem

The influence of the time or era in which a child lives.

Comer's School Development

A comprehensive school reform model that emphasizes the collaboration of parents, educators, and community to improve students' social, emotional, and academic development.