Assume the Plum Corporation has two different issues of common stock. One issue carries voting rights, and the other issue does not. In this situation, Plum is said to have issued
A) buy-back stock.
B) treasury stock.
C) OTC stock.
D) classified stock.

Question

Quizplus · Accepted Answer

Classified stock refers to the issuance of different classes of stock by a company, each with distinct rights, privileges, or restrictions. In this case, Plum Corporation has issued classified stock because it has two types of common stock: one with voting rights and one without.

Assume the Plum Corporation Has Two Different Issues of Common