Types Of stock Flashcards
1
Q
Par Value
A
The minimum issuance price
CANNOT take less, can take more
2
Q
Director liability for below par value issuance
A
Personally liable
3
Q
What type of consideration can be accepted for par value stock?
A
Any valid consideration will be accepted if the board, in good faith, values it as much as par value amount.
4
Q
No Par Stock
A
No min issuance price
Any valid consideration if deemed adequate by the board
5
Q
Treasury Stock - what is it?
A
Stock previously issued by the company and then re-acquired.
It can be re-sold.
This is No Par Stock.
6
Q
SH Preemptive Stock Purchase Rights
A
SH Right to Match percentage owned already
If SH owns 20% of outstanding stock, they can buy up to 20% of new issuance.
