Question

I would like to know what are the pros for allowing listing of shares with different voting rights in stock exchanges while managing the bushiness

Answer 1

Benefits of allowing share with differential rights to list are as follows-

A. It provides with better disclosure management with the exchange and it also provides with following up with various litigation.

B. It helps in protecting the interest of other share holders because the differential share holders are also getting listed and monitored by securities and exchange commission.

C. It helps in generation of enough liquidity into shares.

D. It also helps in controlling the state of the company through getting listed in stock exchanges.

E.it also helps in a fair price discovery mechanism of the shares traded in high volumes.

these are the benefits which are offered when shares with differential rights are listed on the stock exchanges because it will be helpful for all of the stakeholders as it will offer transparency to them.