Briefly explain what are Special Classes of Common Stocks & Founder Shares
| Special classes of common stocks:-are created by a firm to meet special needs and circumstances.
Let’s say we create two classes of common stock namely:
{ note that the above two classes A & B have no standard meaning} Founder shares: Founders’ shares are stock owned by the firm’s founders that have sole voting rights but restricted dividends for a specified number of years. |
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