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Agreement Common Stock  Form

Agreement Common Stock Form

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Instructions and help about Agreement Common Stock

some companies have two different classes of common stock with completely different voting rights so this is called the dual class structure or a dual capitalization and here's how it works so let's say we have a company with Class A common shares and Class B common shares and the Class A common shares get one vote per share the Class B shares are five votes per share so let's say we have two different shareholders shareholder one has a hundred shares of Class A so they're gonna get a hundred votes but shareholder two has a hundred shares of Class B so they're gonna get one hundred times five they're gonna get five hundred votes okay so even though each shareholder has a hundred vote so we've got shareholder one is a hundred shareholder two as one hundred so each shareholder owns 50 percent of the total number of shares but in terms of the total voting power we see that five hundred divided by six hundred the the shareholder owns

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