Question

They are issued to those who helped in incorporating the corporation or for services rendered in launching the welfare of the same

A. Preferred shares
B. Stock in escrow
C. Founder's shares
D. Promotion stock

Answer 1

Founder's shares are issued to those who have helped establish a corporation or have provided services that aid in its development, giving them ownership and stake in the company's success.

Step-by-step explanation:

Founder's shares

are typically issued to the individuals who have played a pivotal role in establishing a corporation, or those who have provided services that contribute to the corporation's development. This type of equity is often allotted to the founders in recognition of their efforts and to provide them with a stake in the company's potential success. The issuance of stock, whether it be

founder's shares

or otherwise, is a means for a company to raise capital for expansion without incurring debt. It also allows firms to bolster their visibility in financial markets. However, the process of issuing stock can be complex and costly, often requiring the expertise of investment bankers and attorneys, as well as compliance with the federal

Securities and Exchange Commission (SEC)

.