The reasons why the investors buy stocks that has no voting rights. Introduction: Stock is a type of security in a company, which denotes the ownership. By issuing stocks, the company can raise the capital. Voting rights are the rights given to the shareholders of the company to vote for electing the board of directors. Every shareholder has only one vote per share.

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Chapter 8, Problem 10CRCT

Summary Introduction

To discuss: The reasons why the investors buy stocks that has no voting rights.

Introduction:

Stock is a type of security in a company, which denotes the ownership. By issuing stocks, the company can raise the capital. Voting rights are the rights given to the shareholders of the company to vote for electing the board of directors. Every shareholder has only one vote per share.

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