When common or preferred shares are made available for sale to the public,the details of the shares are discussed in a legal document called
A)articles of incorporation.
B)share repurchase agreement.
C)shareholder composition.
D)prospectus.

Question

Quizplus · Accepted Answer

The legal document that discusses the details of shares being made available for sale to the public is called a prospectus. The articles of incorporation are a separate legal document that outlines the basic structure of a company, including its name, purpose, and capitalization. A share repurchase agreement pertains to the buying back of a company's own shares, and shareholder composition refers to the makeup of a company's existing shareholders.

When Common or Preferred Shares Are Made Available for Sale