Larry Nelson holds $1,000$ shares of General Electric $($GE$)$ common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company$$s objectives.

True or False: Larry can invest in another company that is selling class A stocks to the public, and class B shares will be retained by company insiders. This will help the founders maintain control in the company.

True

False

Larry also holds $2,000$ shares of common stock in a company that only has $20,000$ shares outstanding. The company$$s stock currently is valued at $$43\mathrm{.}00$ per share. The company needs to raise new capital to invest in production. The company is looking to issue $5,000$ new shares at a price of $$34\mathrm{.}40$ per share. Larry worries about the value of his investment.

Larry$$s current investment in the company is $.$ If the company issues new shares and Larry makes no additional purchase, Larry$$s investment will be worth $.$

This scenario is an example of $.$ Larry could be protected if the firm$$s corporate charter includes a provision.

If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $.$