Classified stock differentiates various classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control.

Question

Quizplus · Accepted Answer

This statement is true. Classified stock can differentiate various classes of common stock and can be used to meet special needs, such as maintaining voting control while raising additional equity capital.

Classified Stock Differentiates Various Classes of Common Stock, and Using