Personal Defenses Are Used to Avoid Payment to an Ordinary

question 27

True/False

Personal defenses are used to avoid payment to an ordinary holder of a negotiable instrument,but not to an HDC or a holder through an HDC.

---

Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the total number of shares owned by shareholders.

Clientele Effect

Stocks attract particular groups based on dividend yield and the resulting tax effects.

Demand

The desire of purchasers, consumers, clients, or buyers for a product or service, combined with their willingness and ability to pay for it.

Dividend Payout

The portion of a company's earnings distributed to shareholders in the form of dividends.