Common Stock
Which voting method allows a shareholder to allocate all their votes to a single board candidate?
Cumulative voting benefits minority shareholders by allowing vote concentration.
Complete Analysis & Legal Rationale
Cumulative voting allows shareholders to multiply their shares by the number of positions being elected and allocate all votes to one candidate. This helps minority shareholders gain board representation.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Statutory voting limits votes per candidate to the number of shares owned.
Matches the verified teaching point in the explanation.
Proxy voting is a method of casting votes remotely, not a vote allocation method.
Preferential voting is not a standard corporate voting method.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.