Question

Consider this case: The CEO of EchoStar Communications, Charlie Ergen, owned around 5% of the company's stock, but his multiple votes per share gave him around 90% of the vote. Source: "Dish Network 2010 Annual Report," on Dish Network Investor Relations, http://files.shareholder.com/downloads/DISH/1330128565x0x480914/DC45515A- D65F-475D-B6C2-CF83AE7A10D6/DISH_-_Web_Posting_-_3.30.11.pdf. Based on this example, which of the following statements is true? Multiple voting shares have super-voting rights, which give more control to a certain class of investors. Multiple voting shares are not issued with the purpose of providing super-voting rights to a certain class of investors. Suppose you work for an investment bank where you are assigned to track Echo Star's stock and create reports that brokers can distribute to investors. Investors can then use these reports and decide whether they want to invest in a particular stock. In this scenario, you are working as a analyst.

Answer 1

Q1: Multiple voting shares have super voting rights which give more control to original investors. ie a certain group of investors can have more control over decisions

Q2:

In this scenario , working as a Sell side analyst.

--- A sell side analyst is someone who analyse the company and works for brokerage firms in general and provide recommendations to investors.

note: the options in the scroll down list was not given, if the option is not mentioned please share the options in comment so that I can give answer based on the options given