Different classes and types of shares carry different degrees of risk for the shareholder.

Question

Quizplus · Accepted Answer

This statement is true. Different classes and types of shares can have varying levels of risk associated with them. For example, common shares generally carry more risk than preferred shares, as common shareholders are typically the last in line to receive payment in the event of a company's liquidation. Additionally, certain companies and industries may be more volatile and subject to fluctuations in the market, which can increase the risk for shareholders.

Different Classes and Types of Shares Carry Different Degrees of Risk