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An example of a company that uses super-voting stock is Alphabet, the parent company of Google. It has three classes of shares: Class A, Class B, and Class C. Its Class B shares are super-voting shares, which confer 10 votes per share. They are only held by founders and insiders, and can't be publicly traded. [3]
In finance, a share class or share classification are different types of shares in company share capital that have different levels of voting rights. For example, a company might create two classes of shares class A share and a class B share where the class A shares have fewer rights than class B shareholders. This may be done to maintain ...
In a September 2009 article titled Mispricing of Dual-Class Shares: Profit Opportunities, Arbitrage, and Trading, [18] Paul Schultz and Sophie Shive positively conclude that one could derive profits by employing a pairs trading approach for dual-class shares. In their paper, Schultz and Shive point out two examples of voting price discrepancies.
For example, consider a company called ProfCo wishing to distribute D, with the help of a stripper company called StripperCo. 1. StripperCo buys ProfCo shares from their present owners for X+D. 2. ProfCo, now owned by StripperCo, declares a dividend of D, which is paid to StripperCo. 3. StripperCo sells its shares back to the owners for X.
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.
This share gives the government organization, or other shareholder, the right of decisive vote in a shareholder meeting. Usually this will be implemented through clauses in a company's articles of association, and will be designed to prevent stakebuilding above a certain percentage ownership level, or to give a government, or other shareholder, veto powers over any major corporate action, such ...
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A shareholder rights plan, colloquially known as a "poison pill", is a type of defensive tactic used by a corporation's board of directors against a takeover.. In the field of mergers and acquisitions, shareholder rights plans were devised in the early 1980s to prevent takeover bids by limiting a shareholder's right to negotiate a price for the sale of shares directly.