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Author Question: Since each share of common stock represents ownership in a company, shares of common stock are often ... (Read 138 times)

jordangardner

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Question 1

One motive for issuing classified stock with different voting rights is to
◦ increase the market value of the company.
◦ avoid SEC reporting requirements.
◦ allow the company's founders to retain control of the company.
◦ facilitate the issue of additional shares in the future.

Question 2

Since each share of common stock represents ownership in a company, shares of common stock are often referred to as
◦ illiquid investments.
◦ equity securities.
◦ fixed-income securities.
◦ unit-cost securities.


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Marked as best answer by jordangardner on Mar 29, 2022

athenaheim

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jordangardner

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Reply 2 on: Mar 29, 2022
Excellent


kthug

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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