Which of the Following Is True of the Issuance of Nonvoting

Multiple Choice

Which of the following is true of the issuance of nonvoting common stock?

A) It is issued in the event of a hostile takeover to preserve the interests of existing owners.
B) It helps the corporation to raise capital through the sale of common stock, without giving up its voting control.
C) It helps the existing stockholders to automatically transfer their voting rights to new stockholders without any legal proceeding.
D) It tends to result in the dilution of voting rights of current stockholders.