Dual-Class Ownership

Dual-class Ownership - a dual-class ownership is where investors share equity with company officers who primarily have more authority then the investors. This usually occurs when a company, which is private, starts to trade on the public market. The original founders, president, CEO, or managers, still want to remain in an authoritative role and still be allowed to sell larger amounts of stock. They still want to maintain their high voting rights A management team is in place and under the dual-class ownership label, they will have more power and voting rights then the investors, allowing them to retain more control of the stock, without investing more money..