XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for a total authorized capital of $1 million, consisting of ten thousand shares of common stock with a par...

XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for a total authorized capital of $1 million, consisting of ten thousand shares of common stock with a par value of $100 per share. The corporation issued for cash a total of five hundred certificates, numbered one to five hundred inclusive, representing various amounts of shares in the names of various individuals. All the shares had been paid for in advance, so the certificates were all dated and mailed on the same day. The five hundred certificates of stock represent a total of 10,500 shares. Certificate number 499 for 300 shares was issued to Jane Smith. Certificate number 500 for 250 shares was issued to William Jones. Is there any question concerning the validity of any of the stock thus issued? Explain. What are the rights of Smith and Jones? Explain.