Why Dual-class Shares Catch On, Over Investor Worries

The governance structure used by companies such as Facebook, Alibaba and Volkswagen is going global, and not everyone is happy. Dual-class shares, as they’re known, give company founders super-sized power over their businesses even if they only hold a small slice of the stock. While the formula is popular, especially among technology firms -- it blends public shares with the private-equity model -- many investors bristle at its undemocratic nature.

Topics:  facebook   alibaba   volkswagen   londo   investor   dual-class shares   structure   
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