Class Voting by Shareholders

Class Voting by Shareholders

Assessment

Interactive Video

Business

University

Hard

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The video tutorial explains the creation of multiple stock classes with varying voting powers. It covers common stock with one vote per share and special classes with enhanced voting rights. The concept of magnifying voting power by creating stock classes with multiple votes per share is discussed. Additionally, the tutorial highlights the creation of preferred stock, which offers preferential treatment in liquidation and other benefits to enhance shareholder value and liquidity.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the purpose of creating multiple classes of stock?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How can voting power be magnified in a class of stock?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What are preferred shares and what benefits do they provide to holders?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways can a company provide liquidity to its shareholders?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What rights might be added to the holders of preferred stock?

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