Different classes of stocks are usually issued to:
I. Maintain ownership control by holding the class of stock with greater voting rights
II. Pay less in dividends between the classes of stock
III. To extract prerequisites without the other class of stockholders knowing
A) I only
B) II only
C) III only
D) II and III only

Question

Quizplus · Accepted Answer

Different classes of stocks are usually issued to maintain ownership control by holding the class of stock with greater voting rights. This is a common practice among companies to ensure that key decisions are made by the majority shareholders. However, the other options of paying less in dividends between the classes of stock or extracting prerequisites without the other class of stockholders knowing are not common reasons for issuing different classes of stocks.

Different Classes of Stocks Are Usually Issued To