Question

A nonaffiliated owns 3% of an issuer's common stock. This person will be considered a control person if a spouse owns A) 8% of the issuer's common stock. B) any shares of the issuer's common stock. C) 5% of the issuer's common stock. D) 2% of the issuer's common stock.

Answer 1

Answer:

Option A. 8% of the issuer's common stock

Explanation:

If the accumulated ordinary share holding by the immediate family members is 10% or more than 10% then all the immediate family members who own ordinary shares of this company are considered control persons. This is because they can influence the decision making of the company and thus these personels are often termed as control person as they have some control of the company.