- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 1. Shareholder Conflicts and 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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