Equity Investing
Dual-Class Shares
Definition
What is Dual-Class Shares?
Two or more share classes with different voting or economic rights.
Example in practice
How This Looks in Practice
Founders may hold shares with ten votes each while public investors receive one vote per share.
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Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.