Different classes of stock usually are issued to:
A) maintain ownership control by holding the class of stock with greater voting rights.
B) pay less in dividends between the classes of stock.
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 stockholders knowing.
E) None of these.

Question

Quizplus · Accepted Answer

Different classes of stock are usually issued to maintain ownership control by holding the class of stock with greater voting rights. This allows certain shareholders to have more control over important company decisions while still allowing for other classes of stock to exist with different financial benefits.

Different Classes of Stock Usually Are Issued To