Some companies have created multiple classes of common stock that enable the founders to control their company
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Some companies have created multiple classes of common stock that enable the founders to control their company long after it goes public. Should corporate laws permit this? If the founders want to control a company, why shouldn’t they buy enough regular stock to do so?
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Corporate laws should permit it This gives the founders the ability to ensure that the com...View the full answer
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Related Book For 
Business Law and the Legal Environment
ISBN: 978-1337736954
8th edition
Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril
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