5 ms·

This seems like a weird structure, why would anyone ever convert Class B stock to Class A?

• harryh 8y ago
  The point of the structure is to maintain insider control, so when an insider want to sell some stock they do the conversation before selling to the public markets.
  • zrail 8y ago
    And it’s likely not optional. Any transfer of shares to someone who is not already a Class B holder will probably trigger a conversion. Iirc that’s how Facebook and Google’s shares are structured.
    • travisjungroth 8y ago
      I wondered how things like death and divorce were handled. Seems like that would cover it.