Why Dual-Class Shares Catch On, Over Investor Worries

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.

Adoption of the structure by exchanges in Londo 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. The governance structure used by companies such as Facebook, Alibaba and Volkswagen is going global, and not everyone is happy.

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