MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS STRUCTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
How is ownership transferred in a corporation?
A
The business is sold
B
Create a new charter
C
Owners must all agree on new owners
D
Stock certificates are sold
E
Through the creation of an written agreement
Explanation: 

Detailed explanation-1: -One is by encashing them with the help of the transfer agent of the company who withholds the stock. Another way is by selling them, again with the help of the broker.

Detailed explanation-2: -In order to cash in the stock, you need to fill out the transfer form on the back of the certificate and have it notarized. Once complete, send the notarized certificate to the transfer agent, who will register the stock to you as owner.

Detailed explanation-3: -If an investor wanted to sell their shares, they would have to present their share certificates to a stock broker. The broker would then send the certificates back to the issuing company for sale.

Detailed explanation-4: -The company could have merged or been acquired with another company and the stock certificate will translate into ownership of the existing company. The value may not be the same as the company’s current share price, however.

Detailed explanation-5: -The simplest solution for selling private shares is to approach the issuing company and ask how other investors liquidated their stakes. Some private companies have buyback programs, which allow investors to sell their shares back to the issuing company.

There is 1 question to complete.