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A share structure with two or more classes of stock carrying different voting rights. Usually: Class A (sold to public, low or no voting power) and Class B (held by founders, higher voting power per share). Gives founders durable control even after going public.
Why It Matters
Dual-class structures are common in tech IPOs (Google, Meta, Snap, and reportedly Anthropic). They let founders make long-term bets without short-term shareholder pressure — but they also limit public investors' ability to hold management accountable. Anthropic's structure is unusually restrictive: it adds a Class T held by a Long-Term Benefit Trust with five independent trustees who get an increasing share of board control over time. Beginners should know that 'owning the stock' doesn't always mean 'having a say.'
Key Points
- Class A voting power is often 1 vote per share; Class B can be 10 or more votes per share.
- Some indices have historically excluded or down-weighted dual-class stocks — though the S&P 500 reversed this for newer listings.
- Beyond voting rights, the classes typically have equal economic rights (dividends, residual claims in liquidation).
Related Terms
Common Questions
A share structure with two or more classes of stock carrying different voting rights. Usually: Class A (sold to public, low or no voting power) and Class B (held by founders, higher voting power per share). Gives founders durable control even after going public. Dual-class structures are common in tech IPOs (Google, Meta, Snap, and reportedly Anthropic). They let founders make long-term bets without short-term shareholder pressure — but they also limit public investors' ability to hold management accountable.
Dual-class structures are common in tech IPOs (Google, Meta, Snap, and reportedly Anthropic). They let founders make long-term bets without short-term shareholder pressure — but they also limit public investors' ability to hold management accountable. Anthropic's structure is unusually restrictive: it adds a Class T held by a Long-Term Benefit Trust with five independent trustees who get an increasing share of board control over time. Beginners should know that 'owning the stock' doesn't always mean 'having a say.'
Class A voting power is often 1 vote per share; Class B can be 10 or more votes per share.
Some indices have historically excluded or down-weighted dual-class stocks — though the S&P 500 reversed this for newer listings.
Beyond voting rights, the classes typically have equal economic rights (dividends, residual claims in liquidation).