Companies Can Issue Different Classes of Common Stock

question 51

Multiple Choice

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

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

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