Transfer restrictions:
A)must be noted on the stock to be valid.
B)are generally valid only in family-owned corporations.
C)cannot be used to satisfy SEC restrictions.
D)none of the above

Question

Quizplus · Accepted Answer

Transfer restrictions must be noted on the stock to be valid. This is important because without proper notification of transfer restrictions, a buyer may not be aware of them and could unintentionally violate them. Transfer restrictions can be applicable to all types of corporations, not just family-owned ones. Additionally, transfer restrictions can be used in conjunction with SEC restrictions to further regulate the transfer of stock.

Transfer Restrictions