Common Stock
An investor owns 200 shares of XYZ Corporation. At the annual meeting, four directors are being elected using cumulative voting. How many total votes does this investor have?
With cumulative voting, the total votes equal the number of shares multiplied by the number of positions being elected. This investor has 200 shares x 4 directors = 800 total votes, which could all be cast for a single c
Complete Analysis & Legal Rationale
With cumulative voting, the total votes equal the number of shares multiplied by the number of positions being elected. This investor has 200 shares x 4 directors = 800 total votes, which could all be cast for a single candidate or distributed among multiple candidates.
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:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.