B Discuss the differences in voting rights and other ownership characteristics among various equity classes

Question 1

Information on the different classes of equity shares

Answer 1

can be found in
the company’s filings with securities regulators, such as the Securities
and Exchange Commission in the United States.

Question 2

General

Answer 2

Some companies’ equity shares are divided into different classes, such as Class A and Class B shares. Different classes of common equity may have different voting rights and priority in liquidation.

Some firms have different classes of common stock (e.g., Class A and Class B shares). These classes may be distinguished by factors such as voting rights and priority in the event of liquidation. Participating and non-participating, cumulative and non-cumulative refer to characteristics of preferred stock.

If Gray owns preferred shares, she would be more likely to receive a dividend than Tower’s common shares. If Gray had purchased shares before an ex-dividend date and Tower purchased the same class of shares after that ex-dividend date, Gray would receive a dividend that Tower did not.

Companies may issue classes of stock (e.g., Class A and Class B shares) that differ in aspects such as voting rights, dividends, or priority of claims in liquidation.