Why does Alphabet have two types of shares? Back to list

Member SinceNov 28, 2022

Posts 24

Keller

Nov 28, 2022 a 03:11
While an IPO has many advantages for the company, it can be risky for founders and insiders because they may lose control of the company over time. One method for founders to retain voting power in the company is to divide their shares into different classes.

There is only a minor difference in the price of Alphabet Class A and Class C shares.

Shouldn't shares with voting rights be more expensive for investors? In the case of Alphabet, founders Page and Brin control more than half of the company's voting rights and easily outvote investors.

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