Occasionally, a Company Will Have Several Classes of Common Stock

question 78

True/False

Occasionally, a company will have several classes of common stock, with each class carrying different rights to dividends and income.

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Definitions:

Unlisted Securities

Securities that are not traded on a formal exchange, often having fewer regulatory requirements.

Thirty-Year Bond

A long-term debt security issued by governments or corporations with a maturity of thirty years, often used as a benchmark for fixed-income securities.

Primary Market

A subdivision of financial markets in which securities are sold for the first time. The sale is by the issuing company to investors. Compare with Secondary market.

Capital Market

A financial market in which longer-term (at least one year) debt and equity securities are traded.