The corporate characteristic of free transferability exists if the corporate stock is subject to a buy-sell agreement.

Question

Quizplus · Accepted Answer

The corporate characteristic of free transferability means that a shareholder can easily transfer their ownership interest in the corporation without any restrictions. However, if the corporate stock is subject to a buy-sell agreement, there may be restrictions on the transferability of the stock, which would not meet the definition of free transferability.

The Corporate Characteristic of Free Transferability Exists If the Corporate