Question

J owns stock in Property Corporation. Property Corporation wants to purchase a new building. J represents Property Corporation as their agent. J must disclose to the seller that J is a stock holder if J owns:

a. 5% of the company
b. 9% of the company
c. 15% of the company
d. Any share of the company

Answer 1

J must disclose to the seller that J is a stockholder if J owns any share of the company.

Step-by-step explanation:

J must disclose to the seller that J is a stockholder if J owns any share of the company.

According to the scenario, the Darkroom Windowshade Company has 100,000 shares of stock outstanding. Even if J owns just one share, they have a stake in the company and should disclose this information to the seller.