Which of the following statements reflects the transferability of ownership rights in a corporation?
A) If a stockholder decides to transfer ownership he must transfer all of his shares.
B) A stockholder may dispose of part or all of his shares.
C) A stockholder must obtain permission from the board of directors before selling shares.
D) A stockholder must obtain permission from at least three other stockholders before selling shares.

Question

Quizplus · Accepted Answer

Ownership in a corporation is represented by shares of stock, and shareholders are free to dispose of part or all of their shares as they choose, without the need for permission from the board of directors or other shareholders. Option A is incorrect because shareholders may sell only part of their shares. Option C is incorrect because shareholders do not need permission from the board of directors to sell their shares. Option D is incorrect because shareholders do not need permission from other shareholders to sell their shares.

Which of the Following Statements Reflects the Transferability of Ownership