Often, a firm creates a second class of stock that has ___________ as compared with the first class.

Name: Often, a firm creates a second class of stock that has ___________ as compared with the first class.
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Often, firms create a second class of stock to differentiate voting rights among shareholders. This allows the company to issue shares without diluting the control of existing shareholders, by giving the new class of stock unequal (often lesser) voting rights compared to the first class.

Often, a Firm Creates a Second Class of Stock That