If a company issues two classes of stock, identical except for voting rights, one with two votes per share and one class with one vote per share, the:
A) value of these shares will be the same.
B) value of the voting shares will be greater than the value of the non-voting shares.
C) company will be forbidden from issuing these shares because they have differential voting rights.

Question

Quizplus · Accepted Answer

The value of voting shares is typically greater than the value of non-voting shares because voting shares provide additional rights to influence the company's decisions, making them more attractive to investors who seek control or input in the company's management.

If a Company Issues Two Classes of Stock, Identical Except