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Series 7: Investment Information & Recommendations
Series 7 practice questioneasyEquity Securities — Common Stock — Statutory Voting

Under statutory (regular) voting, a shareholder with 500 shares voting on 3 board seats can cast:

  1. A500 votes for each seat, but no more than 500 for any one candidate✓ Correct answer
  2. B1,500 votes for a single candidate
  3. C3 votes total
  4. D500 votes total split evenly among all candidates
Explanation

Why A500 votes for each seat, but no more than 500 for any one candidate

Under statutory (regular) voting, shareholders may cast the number of votes equal to their shares for each seat being elected, but they cannot allocate more than that number to any single candidate. With 500 shares and 3 seats, the shareholder votes separately for each seat with a maximum of 500 votes per candidate.

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