If a Company Offers More Than One Class of Stock

question 26

Multiple Choice

If a company offers more than one class of stock, corporate governance experts feel that:

• A)that this is more democratic since some shares are more expensive than others.
• B)that this is preferable in order to provide a special class of nonvoting stock to executives.
• C)super-voting power allows for the election of directors that benefit a specific class of stock.
• D)decisions made by the dual class system is more advantageous for the average investor.