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

Canceled stock certificates should be defaced to prevent reissuance and attached to their corresponding stubs to maintain proper records and prevent fraud.

When Independent Stock Transfer Agents Are Not Employed and the Corporation