Asked by Trevia Knight on Jun 16, 2024
Verified
To control a large widely held corporation,a stockholder would need about _______% of the common stock outstanding.
A) 51
B) 5
C) 40
D) 25
Common Stock
Equity ownership in a corporation, with voting rights and the potential to receive dividends.
- Perceive the significance of companies in the U.S. economic environment and the constructs of ownership and control.
Verified Answer
KC
Kelsey CorderJun 20, 2024
Final Answer :
B
Explanation :
To control a large, widely held corporation, a stockholder typically needs far less than a majority of the common stock outstanding due to the dispersed nature of ownership. Around 5% can be sufficient to exert significant influence, especially in companies with a very fragmented shareholder base.
Learning Objectives
- Perceive the significance of companies in the U.S. economic environment and the constructs of ownership and control.