Companies Can Issue Different Classes of Common Stock

question 12

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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