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Answer on Economics of Enterprise Question for ayomide

Question #45326
what is cheque
Expert's answer
Cheque is a certificate, which gives its holder the right to purchase one type of securities at a fixed price at a certain date. Cheques are issued not independently, but as a component to other securities to enhance their attractiveness. For example, joint-stock companies may issue cheques for the purchase of shares at a discounted price. The owner of a cheque can realize as its rightful owner such security special right to purchase a number of shares, but under certain conditions he can sell a cheque to a third party. In this case, a cheque as the document is also the subject of sale. Cheque is a security, which gives the holder the right to purchase within a specified period of time a certain number of ordinary shares at a pre-fixed price.

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