The XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for total authorized

Question:

The XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for total authorized capital of $100,000, consisting of 1,000 shares of common stock with a par value of $100 per share. The corporation issues for cash a total of 50 certificates, numbered 1 to 50 inclusive, representing various amounts of shares in the names of various individuals. The shares were all paid for in advance, so the certificates are all dated and mailed on the same day. The 50 certificates of stock represent a total of 1,050 shares. Certificate 49 for 30 shares was issued to Jane Smith. Certificate 50 for 25 shares was issued to William Jones. Is the validity of the stock thus issued in any way questionable? What are the rights of Smith and Jones?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...