Stocks
Consideration
Corp Organization
SEC
Miscellaneous
100
A company sets forth the number of shares in its Articles of Incorporation and may sell a certain amount of shares to shareholders but not necessarily all of its shares. For those shares that are sold, they are called ___ and ____.
What are issued and outstanding?
100
The name of the value assigned to shares
What is par value?
100
a corporation acts through its
What is board of directors?
100
FINRA governs these types of trades
What is over the counter stocks?
100
The minimum number of directors that need to be present to conduct business
What is a quorum?
200
Mary owns 500 shares of stock that say: Stockholder has first right to dividends above all other shareholders.
What is preferred stock?
200
Consideration paid for par value is ____________
What is state capital
200
directors must act with good faith and exercise reasonable judgment under this rule
What is the business judgment rule?
200
Mary sells her shares to Sue.
What is an exempt transaction?
200
The group that appoints officers
What is the board of directors?
300
Name the shares that are indicated in the Articles of Incorporation.
What are authorized shares?
300
capital paid in excess of the par value
What is capital surplus?
300
Board of Directors duties include
What are the duty of care, duty of loyalty and duty not to commit waste?
300
President Joe realizes his company is about to go bankrupt and is worried about his mother's interest in the company. He warns her that he will be filing for bankruptcy next Monday. She sells her shares and avoids a huge loss.
What is insider trading?
300
Name the term that eliminates liability for directors personal liability
What is exculpation?
400
The number of votes a common stock shareholder typically has.
What is 1 vote per share?
400
The reason not assigning par value to shares
What is so that a board has flexibility in issuing dividends?
400
Name the type of indemnification in the following example: "directors shall be held harmless for any and all claims of wrongdoing and corporation shall promptly reimburse the directors for any judgments awarded against them regardless of fault."
What is prohibited indemnification?
400
Name of state securities regulation laws
What are Blue Sky Laws?
400
Name of law that prohibits payments to foreign officials to influence them in a discretionary decision
What is the Foreign Corrupt Practices Act?
500
The location of the terms of preference in a preferred stock
What is the Articles of Incorporation and the stock itself?
500
The repurchase of a corporation's own shares
What is redemption?
500
Name the manner in which directors can be removed from office
What is with or without cause by a majority vote of shareholders at a special or annual meeting?
500
Home Depot entices a new successful chairman of its board by promising him a 10 million dollar salary and a 5 year loan of 50 million dollars. Name the problem
What is a violation of the Sarbannes Oxley Act?
500
Name the rights given to a shareholder so that the shareholder can prevent the dilution of his interest
What is preemptive right?
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