Companies Can Issue Different Classes of Common Stock

question 58

Multiple Choice

Companies can issue different classes of common stock. Which of the following statements concerning stock classes is most correct?

• A) All common stocks fall into one of three classes: A, B, and C.
• B) Most firms have several classes of common stock outstanding.
• C) All common stock, regardless of class, must have voting rights.
• D) All common stock, regardless of class, must have the same dividend privileges.
• E) None of the statements above is necessarily true.

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