Conversion of an Instrument

question 32

Multiple Choice

Conversion of an instrument:

• A) is an authorized assumption and exercise of ownership over it.
• B) may occur if a person pays an instrument on a forged indorsement.
• C) differs from conversion of personal property with respect to the applicable laws.
• D) occurs if it does not lack indorsement necessary for negotiation.

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Definitions:

Yield-to-Maturity

The total return anticipated on a bond if the bond is held until the end of its lifetime, considering all payments and assuming a reinvestment of coupons.

Rate of Return

Increment or decrement in the financial worth of an investment across a chosen timeframe, calculated as a percentage of the investment's initial cost.

Dividend

A dividend is a portion of a company's earnings distributed to its shareholders, reflecting a share of the corporation's profitability decided by the board of directors and paid on a regular basis.

Straight Voting

A method of voting in corporate elections where shareholders must vote for directors individually, allocating one vote per share owned to each board candidate.