Dual Class Shares

I learned something interesting today. It’s on dual-class shares.

Dual-class shares are shares that give founding managers or investors a different kind of stock that allows voting control even though they don’t own a majority of the total shares.

Most in the tech industry do not use this type of share, however, Google does. Larry Page, Sergey Brin and Eric Schmidt use their share to exercise absolute control over the company.

I’ll keep that in mind when making a company I own go public in the future.