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They issued a 2nd class of share, BRK.B, which is around $280/share right now and equates to 1/1500th of an BRK.A share. Berkshire A shares are convertible to B
by quickthrowman 5y ago
They issued a 2nd class of share, BRK.B, which is around $280/share right now and equates to 1/1500th of an BRK.A share. Berkshire A shares are convertible to B shares, but the converse isn’t possible.
- exporectomy 5y agoHow can it not be possible? Surely if you have 1500 B shares, you can sell them and buy an A share?
- quickthrowman 5y agoYes, but Berkshire’s stock transfer agent won’t handle the conversion from B to A. You sell them on the market and are taxed accordingly. Their stock transfer agent will give you B shares in exchange for an A share, which is not a taxable event. It’s a mechanism to encourage arbitrageurs to keep the prices of the share classes in lockstep. https://www.berkshirehathaway.com/brkshareholderinfo/compab.pdf https://www.berkshirehathaway.com/brkshareholderinfo/compab....