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What is the main difference in share transfer between a private and a public company?

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Question

What is the main difference in share transfer between a private and a public company?

Options

  • Neither allows share transfer.

  • Only private companies allow it.

  • Public companies restrict share transfer.

  • Private companies restrict share transfer.

MCQ
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Solution

Private companies restrict share transfer.

Explanation:

In private companies, share transfers are limited to maintain control, whereas public companies allow free share transfers.​

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