Question

A forfeited share can ______

Options

• not be re-issued at a discount

• re-issued at a maximum discount of 10%

• be re-issued at a maximum discount equal to the amount forfeited

• None of the above

Answer 1

A forfeited share can be re-issued at a maximum discount equal to the amount forfeited.

Explanation:

The discount on the reissue of forfeited shares cannot be greater than the forfeited amount of the shares, but it can be greater than 10% if the forfeited amount is greater than 10%.