Question: For example, Instagram has two classes of shares. Class A shares are available to individual investors and provide shareholders with one vote per share. CEO
For example, Instagram has two classes of shares. Class A shares are available to individual investors and provide shareholders with one vote per share. CEO Stacy Schurtzman owns 75 percent of the Class B shares, where one share equals 10 votes, giving her control of approximately 60 percent of Instagrams vote.
Is it unfair or unethical for corporations to create classes of stock with unequal voting rights? What are the risks associated with buying these shares?
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