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2. Types of common stock To separate cash flows from certain lines of businesses (mostly in conglomerates), companies create a classified stock tied to a
2. Types of common stock To separate cash flows from certain lines of businesses (mostly in conglomerates), companies create a classified stock tied to a certain line of their business. Such stocks are called stocks Consider this case: target dual-class 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.inwestopedia.com/articles/fundamenta 04/092204, aspaxzz1SfLWYSK Based on this example, which of the following statements is true? Classified shares are not issued with the purpose of providing super-voting rights to a certain class of investors. Classified shares have super-voting rights, which give more control to a certain class of investors. Suppose you work for a mutual fund firm. Your team is thinking of investing in Ford's stock. Your task is to create a report on the stock's performance and investment potential In this scenario, you are working as a analyst
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