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Mixed Inc., a cement manufacturer, issued $5,000 of common stock to their attorney for legal services involving the formation of the company. In reality, the
Mixed Inc., a cement manufacturer, issued $5,000 of common stock to their attorney for legal services involving the formation of the company. In reality, the services were worth only $1,000. It can be said that the attorney has been issued a _____ and would be liable to the corporation for the $4,000 difference.
a.treasury stock
b.junk stock
c.municipal stock
d.zero coupon stock
e.watered stock
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