When independent stock transfer agents are not employed and the corporation issues its own stock and maintains stock records, canceled stock certificates should:
A)be defaced to prevent reissuance and attached to their corresponding stubs.
B)not be defaced but be segregated from other stock certificates and retained in a canceled certificates file.
C)be destroyed to prevent fraudulent reissuance.
D)be defaced and sent to the secretary of state.

Question

Quizplus · Accepted Answer

Cancelled stock certificates should be defaced to prevent reissuance and attached to their corresponding stubs to maintain accurate stock records. This is a common practice for corporations that issue their own stock and maintain their own stock record books.

When Independent Stock Transfer Agents Are Not Employed and the Corporation