Which of the following statements is correct?
A) All common stock must have full voting rights.
B) While firms are allowed to issue different classes of common stock,the Securities and Exchange Commission (SEC)requires that each class have the same dividend privileges.
C) The New York Stock Exchange (NYSE)allows firms with dual class stock to be listed on the exchange.
D) In order to increase a stock's liquidity,investment bankers generally require that insiders sell some percentage of their shares after a firm has undergone an initial public offering (IPO).
E) When a firm raises capital,investment bankers enter into a "best efforts" arrangement which guarantees that the securities will be sold.

Question

Quizplus · Accepted Answer

The New York Stock Exchange (NYSE) does allow firms with dual class stock structures to be listed. This means a company can have multiple classes of shares, each with different voting rights, and still be listed on the NYSE.

Which of the Following Statements Is Correct