ACCA Advanced Financial Management (AFM) Practice Exam 2025 – Comprehensive All-in-One Resource for Exam Success!

Shares with superior voting powers typically trade at a premium because they provide shareholders with enhanced control over corporate decisions. This enhanced control is particularly valuable to investors who prioritize influence and governance in a company, such as founders or those with strategic interests in maintaining certain policies or directions for the company.

The additional voting rights can translate into more significant strategic benefits, such as the ability to elect board members or influence major corporate actions, which are compelling factors for investors willing to pay more for these shares. As a result, the perceived value of having superior voting power can lead to these shares trading at a higher price compared to shares without such advantages.

Other options, like trading at a discount or a fixed price, do not account for the intrinsic value of governance associated with voting power. Trading at a market price would imply that there are no premiums or discounts applied, which doesn't reflect the reality that shares with superior rights carry added value due to the control they offer.