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_ -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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