Jean,in taking his company public,is offering different types of share ownership.Some shareowners will have voting privileges,others will not.This is an example of ______.

Question

Quizplus · Accepted Answer

In dual-class stock, the company offers different types of shares with varying voting rights or privileges. This allows the company founders or executives to retain a controlling interest in the company, even if they own a minority of shares. Therefore, Jean's decision to offer some shareowners voting privileges while others do not, indicates that he is offering dual-class stock. Option B,C, and D are not appropriate in this scenario.

Jean,in Taking His Company Public,is Offering Different Types of Share