SIE Exam Question 139: Answer and Explanation

Question: 139

All of the following are true of stockholder voting methods except that

• A. the statutory method involves an investor voting equal amounts of his or her votes for each of the candidates they would like to vote for.
• B. special circumstances may allow for a stockholder to vote more than one vote per share for each share he or she owns.
• C. the cumulative method involves an investor choosing to cast all of his or her votes for one candidate.
• D. there are two methods by which stockholders may cast their votes.

Correct Answer: B

Explanation:

Stockholders are allowed only one vote for every share owned. The statutory method provides for voting equal amounts of votes over more than one candidate, the cumulative method involves casting all votes for one candidate, and there are two methods for stockholder voting, statutory and cumulative.