Sec. 7, 8, & 9

Question 1

Shares issued to the original founders of a company, often with special rights or privileges such as voting control or preferential dividends.

Answer 1

Founders’shares

Question 2

Shares that the issuing corporation can repurchase from the shareholder at a predetermined price and time, as specified in the company’s articles of incorporation or bylaws.

Answer 2

Redeemable shares or callable shares

Question 3

Shares that were once issued and fully paid for by shareholders but have been repurchased by the issuing corporation. These shares are held in the company’s treasury and are not considered outstanding for voting or dividend purposes.

Answer 3

Treasury shares

Question 4

“shares issued to the organizers and promoters of a corporation in consideration of some supposed right or property.”

Answer 4

Founders’ shares

Question 5

usually preferred, which by its terms is redeemable at a fixed date or at the option of either the issuing corporation or the stockholder or both at a certain redemption price

Answer 5

Redeemable shares

Question 6

is share which has been lawfully issued by the corporation and fully paid for and later reacquired by it either by purchase, redemption (Sec. 8.), donation, forfeiture or other lawful means.

Answer 6

Treasury shares