2. Types of common stock True or False: In some cases, individuals who start a business...

2. Types of common stock True or False: In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. They own a special class of stock called founders' shares. False True Consider this case: When Google went public, it issued Class B shares that had 10 votes per share as compared to Class A shares that had 1 vote per share. Class B shares were sold to the founders, executives, and insiders in the company. Source: "Google 2004 Annual Report," on Google Investor Relations, http://investor.google.com/pdf/2004_Annual Report.pdf. Based on this example, which of the following statements is true? Classified stock is issued to give more votes per share to the founders of the firm. Classified stock is not issued to give more votes per share to founders of the firm. Aa Aa Suppose you work for an investment bank where you are assigned to track Google's stock and create reports that brokers can distribute to investors. Investors can then use these reports and decide whether they want to invest in a particular stock. In this scenario, you are working as a buy-side sell-side analyst. 2. Types of common stock True or False: In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. They own a special class of stock called founders' shares. False True Consider this case: When Google went public, it issued Class B shares that had 10 votes per share as compared to Class A shares that had 1 vote per share. Class B shares were sold to the founders, executives, and insiders in the company. Source: "Google 2004 Annual Report," on Google Investor Relations, http://investor.google.com/pdf/2004_Annual Report.pdf. Based on this example, which of the following statements is true? Classified stock is issued to give more votes per share to the founders of the firm. Classified stock is not issued to give more votes per share to founders of the firm. Aa Aa Suppose you work for an investment bank where you are assigned to track Google's stock and create reports that brokers can distribute to investors. Investors can then use these reports and decide whether they want to invest in a particular stock. In this scenario, you are working as a buy-side sell-side analyst.