Asked by Allison Brown on Jun 24, 2024
Verified
In the absence of a specific agreement, shares of stock are not freely transferable.
Shares of Stock
Units of ownership in a corporation that represent a claim on a portion of the corporation's assets and earnings.
Transferable
Capable of being passed from one entity to another, either through sale, gift, or by operation of law, thereby changing ownership or rights.
- Grasp the concepts of voting trusts, shareholder agreements, and transfer restrictions on shares.
Verified Answer
VZ
Vanessa ZhangJun 29, 2024
Final Answer :
False
Explanation :
In the absence of a specific agreement or restriction, shares of stock in a corporation are generally considered freely transferable, allowing shareholders to sell or transfer their shares to others without restriction.
Learning Objectives
- Grasp the concepts of voting trusts, shareholder agreements, and transfer restrictions on shares.
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