Share classes are similar to bond ratings in that they are used to rank the performance of different corporation's stock.

Question

Quizplus · Accepted Answer

Share classes are not used to rank the performance of different corporation's stock, rather they are used to distinguish different types of shares issued by the same corporation with different voting rights, fees, and privileges. Bond ratings, on the other hand, are used to evaluate the creditworthiness and risk of default of a corporation's debt instruments.

Share Classes Are Similar to Bond Ratings in That They