2. Types of common stock True or False: To segment the rights to which certain c

Question

2. Types of common stock True or False: To segment the rights to which certain common shareholders are entitled, companies often separate common equity into more than one class of shares called classified stock. O False True Consider this case: Mario Hathaway is a majority shareholder of Wizard Inc. He owns Class A shares, with larger-than-proportionate voting rights, of Wizard Inc Based on this example, which of the following statements is true? 0 Classified shares are not issued with the purpose of providing super-voting rights to a certain class of investors 0 Classified shares are issued to provide super-voting rights to a certain class of investors.

Explanation / Answer

Companies often seperate common equity into morethan one class of equity shares is TRUE

Classified shares are issued to provide super voting rights to a certain class of investors is true

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