Smith Corp. has both Class A and Class B shares of common stock. The difference between the two classes of stock is most likely related to
A) Class A stock being worth more than Class B stock.
B) Class A shareholders having greater voting rights than Class B shareholders.
C) Class A shareholders receiving dividends while Class B shareholders do not.
D) Class A shareholders having better preemptive rights than Class B shareholders.

Question

Quizplus · Accepted Answer

The primary difference between Class A and Class B shares often relates to voting rights, with Class A shares typically granting more voting power per share than Class B shares. This structure allows certain groups (like founders or early investors) to retain control over the company.