Dual-Class Share Structure
A corporate equity structure in which a company issues multiple classes of shares—typically Class A and Class B—with different voting weights. This arrangement allows founders or designated shareholders to retain majority voting control even as their ownership percentage is diluted, and is commonly adopted during technology company IPOs.
Timeline (last 90 days)
In a typical dual-class share structure, Class A shares are purchased by ordinary investors and generally carry one vote per share, while Class B shares are held by founders and can carry ten or more votes per share.
Companies adopting founder-control structures may face the problem of being unable to be included in mainstream passive index funds, which in turn affects stock liquidity and valuation premiums.
Dual-class or multi-class voting structures have come under sustained scrutiny from the U.S. Securities and Exchange Commission (SEC) and certain institutional investors in recent years.
All Facts (3)
In a typical dual-class share structure, Class A shares are purchased by ordinary investors and generally carry one vote per share, while Class B shares are held by founders and can carry ten or more votes per share.
50%UnverifiedCompanies adopting founder-control structures may face the problem of being unable to be included in mainstream passive index funds, which in turn affects stock liquidity and valuation premiums.
50%UnverifiedDual-class or multi-class voting structures have come under sustained scrutiny from the U.S. Securities and Exchange Commission (SEC) and certain institutional investors in recent years.
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