Should stock exchanges allow listing of shares with different voting rights? can you answer with the...

Should stock exchanges allow listing of shares with different voting rights? can you answer with the detailed explanations please?

Expert Solution

Yes stock exchanges should allow the listing of shares of differential voting rights as it will help the owners and promoters to to list their company and still control their company through a minimal stake.

These are dual class shares which have differential voting rights and these have a higher number of voting than the original shares of the company which are listed on the stock exchanges.these share should also be allowed to be listed as it will help in maintaining a transparency and control through disclosure requirement on the stock exchanges.

New York stock exchange allows listing of the shares with differential rights as it can be seen in the case of FORD in which 4% of overall shares held by the FORD FAMILY control the 40% of the stake in the organisation so it needs to be listed in order to fairly represent the interest of owners and provide them with and obligation to disclose related information regarding dual class shares.

jeff jeffy answered 1 year ago

Should stock exchanges allow listing of shares with different voting rights? The length of the report...

Should stock exchanges allow listing of shares with different voting rights? The length of the report should not exceed 2000 words excluding tables, appendixes and graphs (if any).

why listing of shares with different voting rights will avoid profitable takeovers and differential voting shares...

why listing of shares with different voting rights will avoid profitable takeovers and differential voting shares cannot really promote long term investment but only short term investment. This share structure may encourage the entrenchment of the core shareholders

This format should allow you more time to think about your answer. You can also use...

This format should allow you more time to think about your answer. You can also use the readings to support your answer. Be sure to cite the author and page number for all quotes or ideas taken from one of the authors (e.g. Chang, p. 81). The length of your answers should range from 1-3 paragraphs, depending on the complexity of the question. Interest in Heterodox economics is increasing. What events have taken place to bring more attention to heterodox...

Aurora Corporation exchanges $700,000 of its voting stock for all of Theda Corporation’s single class of...

Aurora Corporation exchanges $700,000 of its voting stock for all of Theda Corporation’s single class of stock owned entirely by Kyle. Kyle’s basis in his Theda stock was $400,000. (1) Does this exchange satisfy the requirements for a Type B reorganization? In your answer, discuss the requirements for a Type B reorganization and whether they are satisfied in this case. (2) What gain, if any, do Aurora and Kyle recognize on the exchange? (3) What is Kyle’s basis in his...

The corporation whose stock can be bought and sold on stock exchanges and in over the...

The corporation whose stock can be bought and sold on stock exchanges and in over the counter markets are referred to as closely held corp sole proprietorships privately owned Corp publicly owned corp 2. if the prepaid expenses are not adjusted assets on the balance sheet will not be affected will be understand may be either overstated or understated will be overstated 3. which of the following account would be closed at the end of the year acc depreciation capital...

Some companies, such as Google, have created classes of stock with little or no voting rights...

Some companies, such as Google, have created classes of stock with little or no voting rights at all. Should this be allowed? Why would investors buy such stock? Explain in detail please.

2. Which of the following is a characteristic of preferred stock? Give voting rights to its...

2. Which of the following is a characteristic of preferred stock? Give voting rights to its owner. It is like annuity. Investors cannot force the payment of the dividend. Dividends are tax-deductible for the firm as opposed to interest payment. 3. Which of the following is NOT money market security? A. Bankers acceptance B. Treasury notes C. Federal funds D. Eurodollars and Eurodollar CD's 8. You purchased a share of stock for $50. Two years later...

Suppose you own 100 shares of stock and the company is voting to replace 2 members...

Suppose you own 100 shares of stock and the company is voting to replace 2 members of the Board of Directors. You cast 200 votes for one candidate to replace a current board member. You can do this only if the corporation deploys: Select one: a. Traditional voting b. Cumulative voting c. Articles of incorporation d. Preemptive rights

In JAVA How can you multiply two matrices that are different lengths. the answer should be...

In JAVA How can you multiply two matrices that are different lengths. the answer should be in 3d array so [][][] how to multiply a 3d array with a 2d array and the result is in 3d array for example: double[][][] nums1 = { { {0.0, 0.1, 2.0}, {3.0,4.0,5.0} }, { {6.0,7.0,8.0}, {9.0,10.0,11.0} } } int [][] nums2 = { {1,2,3}, {4,5,6}, {7,8,9}} and the results should be in [][][] <-- in this dimension int[][][] answer = { { {18, 21,24},...

Do you believe there should be limits on rights and freedoms or should rights and freedoms...

Do you believe there should be limits on rights and freedoms or should rights and freedoms be inalienable and guaranteed ?

Question