1. which of the statements below is false? A.common stock usually carries the ri
ID: 2708772 • Letter: 1
Question
1. which of the statements below is false?
A.common stock usually carries the right to participate in the management of the firm throught the right to vote for the members of the Board of Directors and for changes to the charter and bylaws of the company.
B. some firms issue several classes of common stock, and these classes may have unequal voting rights.
C.shareholders with super voting right shares have mutliple votes per share= a fact that increases their influence and control over the company
D. the standard of one vote for each share cannot be altered
2.common stock is a vehicle for selling ownership and another way to raise money for operations, expanision, and other business needs.
-True or False
3. Part of the negotiation with the investment banker during the selection process has to do with how the investment banker will be compensated for taking the company public. one of these two standard compensation packages involves ____.
A)A best efforts appraoch, in which the investment banker essentially buys the entire stock issue from the company at one price and then sells the issue at the auction for a higher price.
B)a firm-commitment approach, in which the investment banker essentially buys the entire stock issue from the company at several prices.
C) a firm-commitment approach, in which the investment banker pledges to do his or her best to sell the shares and will take a small percentage of the sale of each stock.
D)A best efforts approach, in which the investment banker pledges to do his or her best to sell the shares and will take a small percentage of the sale of each stock.
4.preferred stock ____.
A)reflects residual ownership of a company.
B)always has a legal and specific claim to a fixed amount (listed as a liability)
C)will be "paid" before the bondholders
D)represents a preferential claim on dividends.
5.most academic research supports markerts as semi-strong efficent
-True or False
Explanation / Answer
1) D is false
2)True
3)D
4)D
5)false
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