Companies Can Issue Different Classes of Common Stock

question 23

Multiple Choice

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

• A) All common stocks fall into one of three classes: A,B,and C.
• B) All common stocks,regardless of class,must have the same voting rights.
• C) All firms have several classes of common stock.
• D) All common stock,regardless of class,must pay the same dividend.
• E) Some class or classes of common stock are entitled to more votes per share than other classes.

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Definitions:

Money Supply

The entire financial capacity of an economy, taking into account cash, coins, and the amounts in both checking and savings accounts, at a specific point in time.

Required Reserve Ratio

The percentage of deposits that banks are legally required to keep on hand as reserves, not loaned out.

Excess Reserves

Excess reserves are the capital reserves held by banks beyond the required minimum, often placed with central banks, earning interest.

Money Supply

The total amount of monetary assets available in an economy at a specific time, which includes cash, coins, and balances held in checking and savings accounts.