By Gilbert E. Matthews, CFA, Sutter Securities, Inc. (San Francisco, Calif., USA)
- An number of companies in U.S. markets are choosing to set up dual class structures and to issue low-vote shares when they go public
- This protects the control shareholders, usually the founders
- The companies have dual class equity structures in which the owners of high-vote shares retain voting control
- 15% of U.S. IPOs in 2015 had dual class structures, up from 12% in 2014 and just 1% in 2005.