CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

In cumulative voting, if there are five board seats open and a shareholder has 100 shares, he could direct ______ votes toward a single seat.

A. 100
B. 250
C. 500
Correct Answer: C

Cumulative voting is the procedure for voting for a company's directors; each shareholder is entitled one vote per share multiplied by the number of directors to be elected. This is sometimes known as proportional voting.

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