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I had the same question and it seems like that could be the case. I don't really have any reputable source but many sites write about it, like http://www.invest

I had the same question and it seems like that could be the case. I don't really have any reputable source but many sites write about it, like http://www.investorguide.com/article/11166/stock-classes-the-difference-between-common-stock-and-preferred-stock-igu/ http://www.investorguide.com/article/11166/stock-classes-the... Normally Class A has the voting right and Class B has not. But I would also like a clarification on this from somebody that actually knows. The S1 filing for Snap Inc. states: "We have paid a stock dividend of our Class A common stock on our capital stock in the past and from time to time in the future may pay special or regular stock dividends in the form of Class A common stock, which per the terms of our amended and restated certificate of incorporation must be paid equally to all stockholders." "Equally to all stockholders", does that mean all Class A holders or both A and B holders?

marvin 10y ago
Okay, thanks for the info. I was asking more due to the general case; if a stock class has no voting rights and never will receive dividends, it is effectively worthless unless holders of other stock classes voluntarily give away their money (they won't). I am a little puzzled at some of the latest innovations in the US stock markets. I can understand investing in a company that a small group of insiders will always have majority control in, as long as all owners are treated equally wrt. all forms of payouts. I really don't understand why the market would assign value to a stock class with no voting rights and no plausible scenario for returning capital to stockholders.