• Some high-tech companies, such as Google and Facebook, have created classified stocks to meet their own special needs. For instance, Google's Class A stock (Symbol: GOOGL) has one vote per share and its Class C stock (Symbol: GOOG) has no vote per share; its Class B stock, which is not traded on the public markets and is retained by the firm's insiders (such as founders and CEO), has 10 votes per share.

  Why are investors willing to buy such Class A or Class C stock with one vote or no vote per share, much less than 10 votes per share of Class B stock?

  Is it unfair or unethical for corporations to create classes of stock with unequal voting rights?

  
  

Answer rating: 100% (QA)

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