To segment the rights to which certain common shareholders are entitled, companies often separate common equity into more than one class of shares called common stock classes.

To separate cash flows from certain lines of businesses (mostly in conglomerates), companies create a classified stock tied to a certain line of their business. Such stocks are called _____ stocks. (target/duel)

Consider the following case:

The CEO of EchoStar Communications, Charlie Ergen, owned around 5% of the companys stock, but his multiple votes per share gave him around 90% of the vote.

Based on this example, which of the following statements is true?

Classified shares have super-voting rights, which give more control to a certain class of investors.

Classified shares are not issued with the purpose of providing super-voting rights to a certain class of investors.