Different classes of shares usually are issued to:
A)maintain ownership control by holding the class of equity with greater voting rights.
B)pay less in dividends between the classes of equity.
C)fool investors into thinking that equity is equity and there is no difference in control or
Value features.
D)extract perquisites without the other class of shareholders knowing.
E)None of the above.

Question

Quizplus · Accepted Answer

Different classes of shares are usually issued to maintain ownership control by holding the class of equity with greater voting rights. This allows the shareholders in that class to have more influence and control over the decisions of the company. It also allows the company to raise capital without diluting the control of the existing shareholders.

Different Classes of Shares Usually Are Issued To