When Comparing Common Stock of the Same Company It Is

question 61

Multiple Choice

When comparing common stock of the same company it is fair to say that:

• A) all shares,no matter how many classes,are all created with the same equal rights.
• B) companies sometimes have two different classes of shares with unequal rights to dividends and votes.
• C) the securities commissions allow only one class of common stock.
• D) investors are indifferent between class A and class B shares.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Production Possibilities Frontier

A graphical representation showing the maximum quantity of two goods or services that an economy can produce when all resources are used efficiently.

Opportunity Cost

Opportunity cost is the value of the next best alternative forgone as a result of making a decision.

Bananas

A curved, yellow fruit that is rich in potassium and can be eaten raw or used in cooking and baking.