Class B share

Last updated

In finance, a Class B share or Class C share is a designation for a share class of a common or preferred stock that typically has strengthened voting rights or other benefits compared to a Class A share that may have been created. [1] The equity structure, or how many types of shares are offered, is determined by the corporate charter. [2]

Contents

B share can also refer to various terms relating to stock classes:

Most of the time, Class B shares may have lower repayment priorities in the event a company declares bankruptcy. Each company’s classes of stock differs and more information is often included in the company’s prospectus. If held long term, Class B shares may also be converted to Class A shares. [4] [5] There are also different reasons for creating Class B shares within a company—there are, however, similar arrangements which companies seem to use when it comes to equity structure. [6]

Class B common shares can be invested in through mutual funds, or through the public market (stock exchange). There are also Class B shares which are referred to as preferred shares in certain companies. Before investing in the shares, investors will look at different financial ratios which will help them value the share and aid in the decision of investing in the stock. [7] [8]

Definition and Application

A share is defined as an ownership of equity in a corporation. Class B shares are known as a type of classification of common stock which may have more or fewer voting rights as compared to Class A shares. In the event of bankruptcy, Class B shares may have a lower repayment priority as well. [9]

Class B shares are financial instruments which represent ownership in a company and proportionate claims on its assets. [4] They exist in companies with dual-class structures or with multiple classes of stock with differences in their voting rights attached to each class. The creation of multiple classes are designed to allow founders of the company to maintain ownership over their company as well as to control the company’s direction. [4] [10] Additionally, having different share classes can be a way for companies to reward early investors: For example, certain companies may designate Class B shareholders as those who invested with the company before a certain period, thus the investors may enjoy benefits such as higher dividends compared to those in other share classes. These details will be illustrated clearly in the company’s bylaws. [11]

Like shares in other share classes, investors can invest in Class B shares through the stock market. Stock markets are secondary markets where current shareholders can transact with potential investors. [12] Another way to invest in Class B shares is through regulated over-the-counter (OTC) exchanges. However, the shares listed there tend to be riskier because they tend to list companies which have failed to meet to more stringent listing criteria of larger exchanges. Additionally, stocks traded OTC usually belong to smaller companies which do not have the resources to be listed on formal exchanges. [13]

The price of the Class B shares fluctuates perpetually as investors reassess the intrinsic value of shares. [4] The decision investors makes as to whether to buy, sell, or hold the stock is based on whether they believe that the stock is undervalued, overvalued, or valued correctly. [14] The price at which someone wishes to buy any share, be it Class B or other classes, is called a bid price. On the other hand, the price at which someone wishes to sell, is known as an ask price or offer. [14] For popular stocks, buyers and sellers will be on each side bidding and asking for new prices consistently. The price of the bid will go up if the demand is more than the supply. On the contrary, if the supply is more than the demand, the bid price will go down. [15]

History of Class B Shares

Berkshire Hathaway

Berkshire Hathaway was the first company to introduce 517,500 new Class B shares into the market in 1996. [16] The company demonstrated the differences between Class A and B shares clearly—stating that the Class B common stock has the economic interests equivalent to 1/30th of a Class A common stock, [17] but has only 1/200th of the voting rights of a Class A common stock. This meant that each share of Class A stock could initially be converted to 30 shares of Class B stock at the option of the holder. [18]

Warren Buffett, the CEO of Berkshire Hathaway, said at the 1996 annual meeting that the intended purpose of Class B shares was made to match the demand for those shares, and was aimed to prevent false inducements. [19] Additionally, unequal voting shares are created so that owners of the company do not have to give up control, but can still tap into the public equity market for financing. [20] Furthermore, the price of the new Class B shares attracted many small investors, whilst making Berkshire accessible to the people with modest amounts of capital. [21] Additionally, his intention was to market Class B shares as a type of long-term investment to prevent prices from fluctuating from supply concerns. [18] Mr Buffett also refused to a stock split and claimed that the high price of Class A shares created an intentional barrier to entry. He added that the company wishes to attract investment-oriented shareholders with long-term horizons. [22]

Ever since, many companies, such as Meta, Groupon, and Alibaba, have incorporated the dual-class stock structure to ensure owners have control over their company while still being able to reach out to many more potential investors at more attractive share prices. [20] [23]

Valuation Metrics of Class B Shares


There are a few things to take into account before analysts value the Class B shares of a company. Valuation of the shares must account for all of its economic rights. These rights include: liquidations preference, dividend rights, conversion rights, redemption rights, participation rights as well as anti-dilution rights. [24] Like other shares, the intrinsic value of a Class B share helps investors decide if they want to buy a stock. Intrinsic value refers to the fundamental and objective value in the asset. This value is different from the market value of a Class B share, if the market price is below the intrinsic value, it may be a good buy. Otherwise, it may be a good sale. [25]

Before investing in Class B shares, investors may value the shares using different metrics to find out which stocks the market has undervalued. Financial ratios are used to analyse a company’s fundamentals. Here are some popular financial metrics used by investors to determine the value of a stock. [26]

Price-to-Earnings Ratio (P/E Ratio)

P/E ratio formula P-E Ratio.png
P/E ratio formula

This is the most common way to value a stock. It is represented by the stock price divided by the company’s most recent earnings per share (EPS). The lower the P/E ratio, the more attractive the amount of value for the share. [27]

This is because a high P/E ratio indicates that a stock’s price is expensive whereas a low P/E ratio indicates that the stock price is cheaper compared to its earnings. This ratio is important as it helps determine whether a stock is overvalued or |undervalued. [28]

Price-to-Book Ratio (P/B Ratio)

P/B ratio formula P-B ratio.png
P/B ratio formula

The P/B ratio is calculated using a company’s current market value divided by its book value. The balance sheet of the company will inform decision-makers on the company’s book value. [29] This ratio shows investors the difference between the Class B’s market value and the book value of the stock. Similar to the P/E ratio, a P/B ratio is generally better if it is lower. A P/B ratio of 0.95, 1 or 1.1 shows that the stock is being traded at what its worth. Hence, investors are more drawn to lower P/B values as it implies that the Class B share is undervalued. [28]

Debt-to-Equity Ratio (D/E Ratio)

D/E Ratio Formula D-E Ratio.png
D/E Ratio Formula

The D/E ratio is a leverage ratio which determines how much debt a company uses to finance its assets. [28] It evaluates the company’s financial leverage by dividing total liabilities by shareholder equity. This ratio is used in corporate finance as it measures the degree the company is financing its operations through debt or their own funding. It also gives insight on the ability of shareholder equity to cover outstanding debt in case the business fails. [30]

A higher risk is often associated with a high D/E ratio. This is because it shows that the company has an aggressive approach when it comes to financing its growth with debt. [30] Additionally, when the D/E ratio gets too high, the cost of borrowing is dramatically increased which may eventually drive down the Class B’s share price of the firm. However, it may also be good as it shows that a firm can easily repay its debt obligations and is using leverage to increase the amount of equity returns. [31]

Differences Between Class A and Class B Shares

Difference in the Various Arrangements of Share Classes Differences in Share Classes.png
Difference in the Various Arrangements of Share Classes

General Investments

Different companies have detailed descriptions of their different classes of stock written in their prospectus, bylaws, and charter. [4] When there are a few classes of stock in a company, they are usually designated as Class A and Class B – where Class A shares carry more voting rights than Class B shares. The percentage difference in voting rights depends on how the company wishes to structure its stock. [7] However, companies are not legally obliged to structure their classes this way – there are some companies which offer more voting rights for their Class B shares instead. [32]

Class B shares are also usually lower in payment priority as compared to Class A shares. When a company goes bankrupt and is forced to be liquidated, Class A shareholders are likely to be paid faster than Class B shareholders. [7] Class A shareholders also usually have dividend priority, which means that companies distribute dividends to Class A shareholders first. [32]

Technology Arrangement

Difference in Voting Rights of General Technology Companies Google's Dual Class Structure.png
Difference in Voting Rights of General Technology Companies

The technology class arrangement derived its name from its popularity amongst technology companies. It usually involves insiders of a company having control over their Class B shares. The Class B shares have about 10 times the voting power of Class A shares, and are not traded on public exchanges. These shares are called "super-voting shares" as they give key company insiders larger control over the company which includes its board and is usually the deciding factor for corporate actions. [33] Hence, the "super-voting shares" are usually not publicly traded. [34] One popular example would be the” Google Share Class Structure”. [32] The purpose of this structure is argued to ensure stability of the company and prevent the board and management from feeling short-term pressure, which in turn allows them to focus on long-term goals. [35]

High-Priced Arrangement

Showcases the differences in voting rights between Class A and Class B shares Berkshire Hathaway's Dual Class Structure as of 2022.png
Showcases the differences in voting rights between Class A and Class B shares

Some companies value their Class A shares at extremely high prices. Although these Class A shares are publicly owned and traded on the market, they are generally out of reach for the typical investor. In these cases, firms create Class B shares which trade at a mere fraction of the Class A’s share. The Class B share, however, has only a small fraction of voting power. These companies create both share classes in a way where price and voting power are not proportional. One example of this arrangement is the Berkshire Hathaway structure. [32]

Mutual Funds

In mutual funds, there are a few differences which set the share classes apart. In terms of fees, Class A share funds charge a “front load”, meaning that a percentage of the purchase amount has to be paid each time shares are bought as commission for the mutual fund’s managers. [36] These front loads can go up to 5% or even higher. On the other hand, Class B share funds charge a “back-end load”, also known as a “contingent deferred sales charge” (CSDC). This means that when the investor chooses to sell, a percentage of the dollar value of shares sold has to be paid. This back-end load, however, decreases directly proportional to the holding period of the fund, [37] and is eventually eliminated. Class B shares can also automatically be converted to Class A shares after a specific holding period, which is beneficial because Class A shares have a lower yearly expense ratio. [38]

Class B mutual fund shares are seen to be a good investment if investors have less cash and a longer time horizon. [36] To avoid the exit fee, an investor should typically remain in the fund for five to eight years. [38]

Why Companies Create Class B Shares

Companies choose to create Class B shares and dual-class structures to allow founders, and other corporate insiders to gain almost complete voting control over the company. This is crucial in the early years of a public company because founders are able to execute their own vision without disruption while being able to tap into the public market’s financing, and being able to enjoy the perks of being a public company. [39] [40] Companies choose to mitigate the risk of exposing their governance and assets to the public market by defining different classes of shares to ensure corporate insiders are in control of the voting rights. With Class B shares in a company, authorities are able to assign different rights to different classes of stockholders. They use different classifications to address issues such as voting authority, dividends, as well as rights to capital and assets. [41]

Meta

An example is the company Meta, formerly known as Facebook. Mark Zuckerberg, the CEO of Meta, owns 360 million Class B shares which gives him complete voting power over other shareholders. Additionally, through agreements with other Class B shareholders, he also controls the votes of 32 other million Class B shares. This gives him control of about 392 million Class B shares, amounting to a total of around 90% of Class B shares available. [42] This amounts to 58% of Meta's vote in total. [43] The ownership of majority of the shares has allowed Zuckerberg to act independently in his decision. One example is his decision to purchase Instagram for US$1 billion, which was made without consulting other Class B shareholders. The company's board has also rejected proposals which aim to weaken Zuckerberg's grip on the company which includes removing the Class B shares in Meta. [44]

Alibaba Group

Another reason for having the founders maintain absolute control of their company is that founders are able to focus on the long-term strategic development of their company. The Executive Chairman of Alibaba Group, Jack Ma, has added that his company’s voting structure aims to preserve the firm’s culture whilst avoiding short-term behaviour at the expense of long-term development. [45] The company is controlled by 28 "partners", including insiders and Ma himself. [46] With this structure, Ma's dictatorship blocks the possibility of any contested election. This means that shareholders will not be able to have a say no matter how the equity ownership evolves in the future. [47]

Google LLC

Google had similar intentions in releasing their Class B shares to make it harder for the public to influence the company’s strategic decisions through their voting rights. Their company’s Class A stock has one vote per share. On the other hand, Google's Class B stock, which is owned and split amongst CEO Eric Schmidt and founders Larry Page and Sergey Brin, was created to have 10 votes per share. Although the three of them only own 31.3% of the total outstanding shares and 86 million Class B shares, because of the voting ratio, the trio controls 66.2% of Google's voting power. [48] Google’s CEO said that the purpose of creating Class B shares was to make it easier for management to follow a “long-term, innovation-based growth strategy”. [49]

Conversion of Share Classes

Shareholders may be able to convert their Class A shares into Class B shares or vice versa depending on what is stated in their bylaws and charter. [50] Fees will also be collected by the company which helps draft legal documents for the conversion of shares in addition to other services in the process such as reviewing, drafting and also updating articles. [51]

Reasons for changing share classes include: [51]

In order to change share classes, members of the company must pass an ordinary resolution with the following details:

  1. Name of shareholder
  2. Number of shares changed
  3. Previous class of shares
  4. New class of shares

Shareholders with Class A shares registered under the name of another nominee must contact the nominee to request a conversion. [50]

After approving the resolution, the company will have to submit a form to the regulatory authority in the country, where the process is given full validation. Later on, new share certificates will be issued to the shareholders who have converted their shares. The application is also normally binding and cannot be revoked. [52]

Shares of Class B Preferred Stock

Some companies may refer to their Class B shares as preferred stock. These stocks are described as a hybrid between bonds and common stock as it has features of both securities. These dividends which come with these shares are paid to shareholders before common shareholders when a company goes bankrupt. [53] [54] Preferred stockholders tend to have a higher claim on asset distributions or dividends compared to common stockholders. This is because of the higher risk assumed with the shares. [55] More information on the preferred stock are dependent on the company and written in the company’s bylaws and charter. [56] Preferred Class B shares generate income which gets preferential tax treatment, and most companies do not give preferred shareholders voting rights. These shares may also be convertible to a predetermined number of common stock, depending on the company’s bylaws. [55] Shareholders’ dividends from these stocks usually yield more than common stock and are paid monthly or quarterly. [56]

When preferred shares are issued, issuers avoid dilution of control as there are limited or no voting rights which come with the shares. Companies can also buy back the preferred stock and if the price is above the par value, investors may receive a profit from the stock. [55]

See also

Related Research Articles

<span class="mw-page-title-main">Dividend</span> Payment made by a corporation to its shareholders, usually as a distribution of profits

A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business. The current year profit as well as the retained earnings of previous years are available for distribution; a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or by share repurchase. In some cases, the distribution may be of assets.

Investment is traditionally defined as the "commitment of resources to achieve later benefits". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow, while money received in a series of several time periods is termed cash flow stream.

<span class="mw-page-title-main">Equity (finance)</span> Ownership of property reduced by its liabilities

In finance, equity is an ownership interest in property that may be offset by debts or other liabilities. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule.

A shareholder of corporate stock refers to an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation. A person or legal entity becomes a shareholder in a corporation when their name and other details are entered in the corporation's register of shareholders or members, and unless required by law the corporation is not required or permitted to enquire as to the beneficial ownership of the shares. A corporation generally cannot own shares of itself.

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management. The WACC represents the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital, or they will invest elsewhere.

<span class="mw-page-title-main">Berkshire Hathaway</span> American multinational conglomerate holding company

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Founded in 1839 as a textile manufacturer, it underwent a drastic restructuring into a conglomerate starting in 1965 under the leadership of chairman and CEO Warren Buffett and vice chairman Charlie Munger. The company's main business and source of capital is insurance, from which it invests the float in a broad portfolio of subsidiaries, equity positions and other securities. Buffett and Munger are known for their advocacy of value investing principles and under their direction, the company's book value has grown at an average rate of 20%, compared to about 10% from the S&P 500 index with dividends included over the same period, while employing large amounts of capital and minimal debt.

In finance, a convertible bond, convertible note, or convertible debt is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering.

The dividend yield or dividend–price ratio of a share is the dividend per share divided by the price per share. It is also a company's total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage.

Preferred stock is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior to common stock but subordinate to bonds in terms of claim and may have priority over common stock in the payment of dividends and upon liquidation. Terms of the preferred stock are described in the issuing company's articles of association or articles of incorporation.

Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Commonwealth realms. This type of share gives the stockholder the right to share in the profits of the company, and to vote on matters of corporate policy and the composition of the members of the board of directors.

In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued are bought, while stocks that are judged overvalued are sold, in the expectation that undervalued stocks will overall rise in value, while overvalued stocks will generally decrease in value. A target price is a price at which an analyst believes a stock to be fairly valued relative to its projected and historical earnings.

In corporate finance, capital structure refers to the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt, and preferred stock, and is detailed in the company's balance sheet. The larger the debt component is in relation to the other sources of capital, the greater financial leverage the firm is said to have. Too much debt can increase the risk of the company and reduce its financial flexibility, which at some point creates concern among investors and results in a greater cost of capital. Company management is responsible for establishing a capital structure for the corporation that makes optimal use of financial leverage and holds the cost of capital as low as possible.

The return on equity (ROE) is a measure of the profitability of a business in relation to its equity; where:

A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company's existing security holders. When the rights are for equity securities, such as shares, in a public company, it can be a non-dilutive pro rata way to raise capital. Rights issues are typically sold via a prospectus or prospectus supplement. With the issued rights, existing security-holders have the privilege to buy a specified number of new securities from the issuer at a specified price within a subscription period. In a public company, a rights issue is a form of public offering.

Non-voting stock is the stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. This type of share is usually implemented for individuals who want to invest in the company's profitability and success at the expense of voting rights in the direction of the company. Preferred stock typically has non-voting qualities.

Stock dilution, also known as equity dilution, is the decrease in existing shareholders' ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders. This increase in the number of shares outstanding can result from a primary market offering, employees exercising stock options, or by issuance or conversion of convertible bonds, preferred shares or warrants into stock. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share, and the value of individual shares.

Share repurchase, also known as share buyback or stock buyback, is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way of returning money to shareholders. When used in coordination with increased corporate leverage, buybacks can increase share prices.

<span class="mw-page-title-main">Stock</span> Shares into which ownership of the corporation is divided

Stocks consist of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets, or voting power, often dividing these up in proportion to the amount of money each stockholder has invested. Not all stock is necessarily equal, as certain classes of stock may be issued, for example, without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of shareholders.

<span class="mw-page-title-main">Share price</span> Term in finance

A share price is the price of a single share of a number of saleable equity shares of a company. In layman's terms, the stock price is the highest amount someone is willing to pay for the stock, or the lowest amount that it can be bought for.

<span class="mw-page-title-main">Corporate finance</span> Framework for corporate funding, capital structure, and investments

Corporate finance is the area of finance that deals with the sources of funding, and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize or increase shareholder value.

References

  1. ↑ Gad, Sham M. (2009). The Business of Value Investing: Six Essential Elements to Buying Companies Like Warren Buffett. Hoboken, NJ: John Wiley & Sons. pp. 214–216. ISBN   978-0-470-55385-5.
  2. ↑ Pezzutti, Paolo (2008). Trading the US Markets: A Comprehensive Guide to Us Markets for European Traders and Investors. Petersfield, UK: Harriman House Limited. p. 52. ISBN   978-1-905641-05-5.
  3. ↑ He, Yan (2006). "Chapter 15: Chinese A and B Shares". In Lee, Cheng-Few; Lee, Alice C. (eds.). Encyclopedia of Finance. New York: Springer Science & Business Media. pp. 435–436. ISBN   978-0-387-26284-0.
  4. 1 2 3 4 5 Hayes, Adam (2022). Anderson, Somer (ed.). "Class B Shares Definition". Investopedia.
  5. ↑ "Empire State Realty Trust Registration Rights Agreement". Law Insider. 2013.
  6. ↑ Wilkins, Glenn (2022). Yashina, Natalya (ed.). "6 Basic Financial Ratios and What They Reveal". Investopedia.
  7. 1 2 3 Maverick, J.B. (2022). Brock, Thomas (ed.). "Class A Shares vs. Class B Shares". Investopedia.
  8. ↑ McGowan, Lee (2022). Scott, Gordon (ed.). "What Are Mutual Fund Class B Shares?". The Balance.
  9. ↑ Scott, Gordon (2021). "Class B Shares Definition". Investopedia.
  10. ↑ "Multiple Share Class Company". Vistra.
  11. ↑ Davies, Anna (2021). "Class A vs Class B vs Class C Shares". Sofi.
  12. ↑ Beers, Brian (2021). "A Look at Primary and Secondary Markets". Investopedia.
  13. ↑ "Over-the-Counter (OTC)". Corporate Finance Institute.
  14. 1 2 Kennon, Joshua (2022). Clemon, Doretha (ed.). "How Are Stock Prices Determined". The Balance.
  15. ↑ Price, Mike (2022). "How Are Stock Prices Determined?". The Motley Fool.
  16. ↑ Kenton, Will (2022). "Baby Berkshire Definition". Investopedia.
  17. ↑ Buffett, Warren (1996). "Chairman's Letter-1996". Berkshire Hathaway Inc.
  18. 1 2 Segal, Troy (2022). Scott, Gordon (ed.). "How Are Stock Prices Determined?". Investopedia.
  19. ↑ Buffett, Warren (1996). "Why Create Class B Shares?". Berkshire Hathaway Inc. Event occurs at 4:52.
  20. 1 2 McClure, Ben (2021). "The Two Sides to Dual-Class Shares". Investopedia.
  21. ↑ Caplinger, Dan (2017). "5 Key Moments in Berkshire Hathaway's History". The Motley Fool.
  22. ↑ Vega, Nicolas (2022). "Here's Why Warren Buffett Says He'll Never Split the Stock". CNBC.
  23. ↑ "Alphabet's GOOG vs. GOOGL: What's the Difference?". Investopedia. 2022.
  24. ↑ "Equity Allocation For Complex Capital Structures". Equity Methods.
  25. ↑ Alvarez, Socrates (2022). Scott, Gordon (ed.). "What is the Intrinsic Value of a Stock?". Investopedia.
  26. ↑ "Types of Valuation Multiple". Corporate Finance Institute. 2022.
  27. ↑ Hartill, Robin (2022). "The Definitive Guide: How to Value a Stock". The Motley Fool.
  28. 1 2 3 Elmerraji, Jones (2022). "Five Must Have Metrics". Investopedia.
  29. ↑ Bromels, John (2022). "Price-to-Book Ratio". The Motley Fool.
  30. 1 2 Fernando, Jason (2022). "Debt-to-Equity Ratio". Investopedia.
  31. ↑ "Debt-Equity Ratio". Corporate Finance Institute. 2022.
  32. 1 2 3 4 Chenfirst=James (2022). Scott, Gordon (ed.). "Class A Shares". Investopedia.
  33. ↑ "Multiple Share Classes and Super-Voting Shares". Investopedia. 2021.
  34. ↑ McClure, Ben (2021). "The Two Sides of Dual-Class Shares". Investopedia.
  35. ↑ Stewart, Emily (2018). "Mark Zuckerberg is essentially untouchable at Facebook". Vox.
  36. 1 2 "How Are a Mutual Funds C Shares Different from A and B Shares". Investopedia. 2022.
  37. ↑ Thune, Kent (2022). Scott, Gordon (ed.). "Class A Shares vs. Class B vs. Class C Mutual Fund Shares: Which Should You Choose?". The Balance.
  38. 1 2 Cook, Jennifer (2021). Stapleton, Chip (ed.). "The ABCs of Mutual Fund Classes". Investopedia.
  39. ↑ "Dual-Class Shares: The Good, The Bad, The Ugly". CFA Institute.
  40. ↑ Stewart, Emily (2018). "Mark Zuckerberg is essentially untouchable at Facebook". Vox.
  41. ↑ Reed, Eric (2019). "How Class A, B and C Share Classes Differ". Yahoo! Finance.
  42. ↑ Lauricella, Tom (2021). Norton, Leslie (ed.). "How Facebook Silences Its Investors". Morningstar.
  43. ↑ Atkins, Betsy (2021). "Facebook Strong Arms Investors Who Want Zuckerberg Out".
  44. ↑ Mayer, David (2021). "No Matter How Bad the Whistleblowers get, Mark Zuckerberg remains Untouchable". Fortune.
  45. ↑ Ying, Fang (2014). "Alibaba's Stock Structure: Love It or Hate It?". CUHK Business School.
  46. ↑ Oran, Olivia (2013). "How Jack Ma can Keep a Tight Grip on Alibaba after IPO". Reuters.
  47. ↑ "Alibaba: A Dictatorship?". Columbia Business School. 2016.
  48. ↑ Drummond, David (2012). "Letter From Larry Page and Sergey Brin". SEC Gov.
  49. ↑ Mills, ELinor (2006). "Google to Defend Dual-Class Structure". CNET.
  50. 1 2 "Conversion of Class A shares to Class B shares". Eolus.
  51. 1 2 "Conversion of Shares". Company Law Club.
  52. ↑ Sharma, Vrinda (2020). "Changing of Class of Shares". DNS Associates.
  53. ↑ Fernando, Jason (2022). "Preference Shares". Investopedia.
  54. ↑ "Preferred Stock". Bankrate.
  55. 1 2 3 Marquit, Marinda (2022). "Preferred Stock -- The Best of Bonds and Security in One Equity". Forbes Advisor.
  56. 1 2 Ganti, Akhilesh (2022). Silberstein, Samantha (ed.). "Preferred Stock". Investopedia.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.