Chapter 8, Problem 9CRCT

Summary Introduction

To discuss: Whether it is unethical or unfair to make classes of stock by the means of unequal voting rights.

Introduction:

Stock is a type of security in a company, which denotes 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.