IPO University

Dual Class

Tech companies often sell the public shares that come with fewer votes. These Class A shares may have 1 vote, while insiders keep Class B shares with 10 votes apiece. This is often pitched as a way of protecting the founder’s vision from the vicissitudes of Wall Street. However, investors should be wary of giving up voting control. Google was one of the first large tech IPOs to have a dual-class IPO. Snap took it a step further, offering IPO investors shares without any voting power.