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I think the issue is that often tech company founders / management have preferred shares and therefore greater voting rights than general common stock sharehold
by ashishk 17y ago
I think the issue is that often tech company founders / management have preferred shares and therefore greater voting rights than general common stock shareholders. So even if a large group of common shareholders wanted to see dividends, they wouldn't have much authority.
I may be wrong though, I'm just starting to learn more about corporate finance.
- dschobel 17y agoThis is true. Most companies are structured so that there exists a preferred share class with greater voting rights so to pass anything you'd have to get buy in from the board members who are the ones who typically own this share class.
- anamax 17y ago> Most companies are structured so that there exists a preferred share class with greater voting rights "Most"? The press accounts around Google's IPO said that voting preferences were somewhat rare. They mentioned some newspaper companies and Ford. Do MS, Apple, or Cisco have voting preferences?