3 ms·
You don't need to do this, you can just make multiple classes of shares and only put one class on the market. Zuckerberg personally owns a majority share of fac
by Joeri 6y ago
You don't need to do this, you can just make multiple classes of shares and only put one class on the market. Zuckerberg personally owns a majority share of facebook, and yet it is publicly traded. Facebook public shareholders have no voting power, because zuckerberg has two thirds of the votes.
- perlgeek 6y agoThere are other reasons to do such splits though; a popular is tax evasion (the parent company holds the intellectual property, and charges the child company enough fees that the child company doesn't make any profits), and of course private companies don't have the same disclosure obligations as public companies.
- dasudasu 6y agoIt's usually not seen very positively by the market unless the holder is viewed as extraordinarily visionary. Outside of tech, it's much harder to spin the visionary angle, so they often trade at a significant discount to their peers. It's the removal of a form of checks and balances. If the direction is good, shareholders would go along anyway, but if it's bad, there is nothing to do to exert influence except jump ship.