Funds belonging to others which a broker and their agents handle when acting in a transaction are called:
a. broker fees.
b. trust funds.
c. bonds.
d. security deposits.
Answer: b. trust funds.
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LookGood, Inc. has just announced the bad news that its earnings have dropped by 30 percent. In fact, its investors had anticipated even worse results (a decrease of 40 percent). As a result, LookGood's stock price:
A) Remains the same. B) Increases. C) Decreases. D) Follows a random walk as usual.
Which of the following statements concerning shareholders is FALSE? Shareholders
A) have a right to receive notice of and attend the corporation's annual general meeting. B) have a right to see the daily accounting books and corporate business files. C) have a right to call special meetings of the corporation in particular situations where the Board of Directors refuses to call one. D) that have voting rights have the rights to elect directors of the corporation. E) have a right to seek a remedy if they have been unfairly treated by other shareholders.