Investment Literacy: Types of Stock
 

_-Class A Common Stock sold
to the general public.

_ -Class B Preferred Stock
only sold to people original owners want in control.
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When a company "
goes public"
to raise capital it becomes a
corporation and no longer
belongs to the original
owners.

Stock holders become owners and
51% of these new owners voting
together can oust the original
management team and take
control of the company.

Keeping Class B Stock "in the
family" keeps outsiders from
"stealing" a company.
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