Dual-class Structure (two classes of stock)

Some companies have two classes of common stock, with each class of stock having different voting rights. Facebook, for example, has Class A shares (1 vote per share) and Class B shares (10 votes per share). This dual-class structure (aka dual capitalization) allows a founder or family to raise money by issuing shares to the public while still retaining control over the company. A founder, for example, might own 27% of the combined shares and yet have 57% of the combined voting power.
The advantage of a dual-class structure is that it allows the company's leadership to focus on building value for the long-run; the firm doesn't need to worry as much about hitting quarterly earnings targets (because the company isn't at risk to be taken over, it can focus on the long-term). The downside is that, if the founder or family is running the company poorly, it can be difficult to wrest control from them (this can be to the detriment of the other shareholders).
If you'd like to read more about Facebook's dual-class structure, you can read more about it in Facebook's 10-K for the 2019 fiscal year, which can be accessed here:
www.sec.gov/ix...
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[@nabhanh7334]

Great explanation with examples!

[@franklucas4214]

very straightforward 👍🏽

[@Edspira]

Glad you liked it!

[@haymanotbekele2498]

How can I calculate liquidation of a company at the end