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BUS 670 Securities

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Respond to Chapter 45, Problem 14 on sale of securities:Amenity, Inc. was incorporated with 1 million authorized shares, which were issued to Capital General Corporation (CGC) for $2,000. CGC distributed 90,000 of those shares to about 900 of its clients, business associates, and other contacts to create and maintain goodwill among its clients and contacts. CGC did not receive any monetary or other direct financial consideration from those receiving the stock. Amenity had no actual business function at this time, and its sole asset was the $2,000 CGC had paid for the 1 million shares. Through CGC

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