Question

Which of the statements below is​ FALSE?

A. Shareholders with super voting right shares have multiple votes per share a fact that increases their influence and control over the company.
B. Some firms issue several classes of common​ stock, and these classes may have unequal voting rights.
C. The standard of one vote for each share cannot be altered.
D. Common stock usually carries the right to participate in the management of the firm through the right to vote for the members of the Board of Directors and for changes to the charter and bylaws of the company.

Answer 1

C. The standard of one vote for each share cannot be altered.

Step-by-step explanation:

Shares are sold to individuals that now obtain ownership rights of a company.

Common share holders are entitled to voting in of new board members and also have the ability to vote for changes in bylaws of the company.

Also common shareholders are shares have different classes with different voting rights.

However it is not true that the standard of one vote for each share cannot be altered.

When more shares are issued by a company it can result in dilution of shares. That means for example if a person has 10,000 shares in a company with 1 million shares, and the company now issues an extra 1 million shares making 2 million in total now.

The shareholder's standard of vote for each share is now halved