What is a Dual Class Stock?
A dual class stock is the issuing of various types of shares by a single company. A dual class stock structure can consist of Class A and Class B shares, for example. Shares can differ, based on distinct voting rights and dividend payments.
When multiple share classes are typically issued: one share class is offered to the general public, while the other is offered to company founders, executives and family. The class offered to the general public has limited or no voting rights, while the class available to founders and executives has more voting power and often provides for majority control of the company.
Understanding Dual Class Stock
Well-known companies, such as Ford and Warren Buffett's Berkshire Hathaway, have dual class stock structures, which provide founders, executives, and family the ability to con