A / B Shares

To Vote or Not to Vote

The common class of share is one dollar system and all shares are same class, each share entitles to one vote. However, in the structure of A/B class of share, the companies that issue common stock are free to offer shares having different voting rights. Commonly referred to as voting and non-voting shares, the issuer decides how much voting power, if any, each classification holds. Because of this, Class A and Class B shares in a company might entitle an investor to one vote and 10 votes per share, while shares in another company might entitle Class A stockholders to one vote per share and designate Class B shares as having no voting rights at all.

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