One method that restricts stock's transferability is known as the ________.

Question

Quizplus · Accepted Answer

The right of first refusal is a contractual agreement giving its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party. In the context of stock transferability, it means that before a shareholder can sell their shares to someone else, they must first offer them to the party holding the right of first refusal under the same conditions.

One Method That Restricts Stock's Transferability Is Known as the ________