- CFA Exams
- CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 8. Analyst Considerations in Corporate Governance and Stakeholder Management
CFA Practice Question
In a typical dual-class structure, the most important difference between the two classes is ______.
A. voting rights
B. dividend payments
C. price
Explanation: Two share classes are typically issued: one share class is offered to the general public, and the other is offered to company founders, executives, and family. The class offered to the general public has limited voting rights, while the class available to founders and executives has more voting power and often provides a majority control of the company.
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