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2. Types of common stock Aa Aa True or False: To segment the rights to which certain common shareholders are entitled, companies often separate common

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2. Types of common stock Aa Aa True or False: To segment the rights to which certain common shareholders are entitled, companies often separate common equity into more than one class of shares called classified stock. False True Consider this case: Ford has a dual-class stock structure. The Ford family controls 40% of voting power with around 4% of total equity in the firm. Source: "The Two Sides of Dual-Class Shares," on Investopedia Articles, http://www.investopedia.com/articles/fundamental/04/092204.asp#axzz1SfLwY5K8 Based on this example, which of the following statements is true? Classified shares have super-voting rights, which give more control to a certain class of investors. Classified shares are not issued with the purpose of providing super-voting rights to a certain class of investors

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