Dual Class Shares Are Best Defined As

question 18

Multiple Choice

Dual class shares are best defined as:

• A)a process where a company issues both common and preferred stock to finance the company.
• B)a scenario in which companies have more than one class of shares and one class has superior voting rights over the other class.
• C)a scenario in which 51% of the shares are held by a holding company which is part of a pyramid structure.
• D)a process where a company issues shares in two separate countries each trading on a separate stock exchange.

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Definitions:

Expected-Utility Maximizer

An economic concept referring to an individual who chooses between uncertain prospects by comparing their expected utilities.

Bet

A wager or gamble where an individual risks a certain amount of money or valuables on the outcome of an uncertain event.

Random Variable

A variable whose possible values are outcomes of a random phenomenon, often used in probability and statistics.

Soft Drink

A non-alcoholic beverage usually carbonated, sweetened, and flavored, including sodas and cola drinks.