Multiple choice

A share certificate

  1. Allows the person named therein to transfer the share mentioned therein by mere endorsement on the back of the certificate.

  2. Allows the person named therein to transfer the share mentioned therein by mere delivery of the certificate.

  3. Allows the person named therein to transfer the share mentioned therein by mere endorsement on the back of the certificate and the delivery of the certificate.

  4. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A share certificate requires BOTH endorsement (signature on the back) AND delivery for valid transfer. Mere endorsement alone is insufficient, and mere delivery alone without endorsement is also insufficient. Neither A nor B is complete, and C incorrectly combines them as alternatives rather than requirements. D correctly states none of these.

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