Asked by Ke'Darius Thornton on May 05, 2024
Verified
The practice that gives minority stockholders a chance to elect at least one director is called:
A) pre-emptive rights of stockholders.
B) maintaining proportionate ownership.
C) voting rights of stockholders.
D) cumulative voting.
Cumulative Voting
A method of electing boards of directors in which stockholders can cast all of their votes for a single seat. Enables minority interests to get at least some representation on the board.
Minority Stockholders
Minority stockholders are investors who own a smaller portion of a company's shares and typically do not have control or significant influence over the company's decisions.
- Recognize the elements that influence the intrinsic value of a stock and the importance of fundamental analysis.
Verified Answer
Learning Objectives
- Recognize the elements that influence the intrinsic value of a stock and the importance of fundamental analysis.
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