If a corporation has two classes of common stock, what is typically unique about the second or class B common stock?
A)It has superior voting rights.
B)It has inferior dividend payments.
C)It has no voting rights.
D)It has superior dividend payments.

Question

Quizplus · Accepted Answer

Class B common stock typically has inferior voting rights compared to Class A common stock. This is because Class A common stock is generally held by the founders or management of the company, who want to retain control and voting power. Class B common stock may have fewer voting rights or no voting rights at all, but may have other benefits such as higher dividends or preferential treatment in the event of a merger or sale of the company.

If a Corporation Has Two Classes of Common Stock, What