Q826
Shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as
A.
protected shares
B.
founders shares
AnswerC.
withdrawal shares
D.
original shares
Answer: Option B
Solution
Answer: Option B
Solution:
Shares or stocks which are protected against withdrawals of funds by an original stock owners are classified as founders shares. Founders stock refers to the shares issued to the originators of a company. Often, the stock does not receive any returns up to the point that a dividend is payable to the common stockholders. Founders stock comes with a vesting schedule, which determines when the shares are exercisable.