Which of the following statements is incorrect?
A) Nonvoting shares always trade for less than voting shares.
B) Nonvoting shares are common shares that have no voting rights.
C) In the 1980s, companies issued shares with superior voting rights as takeover defenses.
D) Nonvoting shares normally have a slight premium in terms of the right to a dividend to offset the lost value of control.

Question

Quizplus · Accepted Answer

Nonvoting shares do not always trade for less than voting shares. The price difference between nonvoting and voting shares can vary based on several factors, including market perception, dividend policies, and the overall demand for the shares. Therefore, it's incorrect to state that nonvoting shares always trade for less than voting shares.

Which of the Following Statements Is Incorrect