Dual Class Stock

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Dual Class Stock

A stock in a publicly-traded company that issues two types of stock. Each stock class has distinct rights attached to it. Generally speaking, dual-class stocks include preferred stock, which carries the right to guaranteed dividends, and common stock, which carries the right to vote in the annual meeting.
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Investors are free to avoid those dual-class stocks, though, and newspaper companies have avoided the governance scandals that fueled cries for businesses to clean up their acts, pointed out Alan J.
maintain dual-class stock structures that permit family control, other governance measures are just symbolic: "None of this matters if you still have two classes of stock.