Long-Term Equity AnticiPation Securities (LEAPS) Are a Form of Option

question 31

True/False

Long-term Equity AnticiPation Securities (LEAPS) are a form of option that gives the holder the right to buy newly issued shares of stock directly from the issuing corporation.

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Definitions:

Abuse of Dominant Position

An anti-competitive business practice where a dominant firm uses its market power to exclude competitors or exploit consumers.

Regulatory Law

A body of law that governs the activities of administrative agencies of government, including rule-making and enforcement.

Criminal Law

The body of law that relates to crime and the regulation of conducts prohibited by the state, including the imposition of penalties for their violation.

Civil Law

A legal system based on codified laws and statutes, in contrast to common law, which is primarily based on judicial decisions and precedent.