dual-class shares

Dual-class shares are a type of stock structure where a company issues two categories of shares, usually Class A and Class B. These shares grant different voting rights; for example, Class B shares might have significantly more voting power than Class A shares. This setup allows company founders or insiders to retain control over key decisions, even if they own a smaller portion of the total equity. Investors in the lower-voting shares may benefit from financial returns but have limited influence on company management. Dual-class structures are often used to help founders maintain control while raising capital from public markets.