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Question
Which of the following is true of founders' shares?
a. Founders' shares are certificates that represent ownership in stocks of foreign companies held in trust by the bank that created the founders' shares.
b. The terms founders' shares and Euro stocks are used interchangeably.
c. Founders' shares are stocks owned by the creators of a company that have sole voting rights but generally pay out only restricted (if any) dividends for a specified number of years.
d. Founders' shares are issued by foreign companies and traded in the United States.
e. With the exception of shares traded in the United States, any shares that are traded in a country other than the issuing company's home country are called founders' shares.
Answer
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Related questions
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c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.