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enot [183]
3 years ago
5

Gary owns shares in a company called Archibald Industries Inc. The company's financial performance has been declining over the p

ast few months, and the value of its stock has been decreasing. Gary wants to proactively cut his losses and therefore sells his shares. Anneke, a trading enthusiast, buys shares in Archibald Industries because she believes that the share prices cannot go anywhere but up. Which of the following characteristics of a public stock company does this scenario best exemplify?a) legal personality b) separation of legal ownership and management control c) transferability of investor ownership d) limited liability for investors
Business
2 answers:
nadezda [96]3 years ago
4 0

Answer:

transferability of investor ownership

rusak2 [61]3 years ago
4 0

Answer:

The answer is C. transferability of investor ownership

Explanation:

Transferability of investor ownership is a characteristic of a public stock company in which the stocks owned by shareholders and investors can be sold and bought at will. This means that investors can choose to sell their stake in a company whenever they feel that it is unsafe to continue investing in the company. Conversely, investors can also choose to purchase stock in a public company if they feel that the company is profitable, or will be profitable in future.

In summary therefore, transferability of investor ownership describes a process whereby investors are allowed to trade shares of stocks.

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