This article appeared in the Institutional Investor on August, 15, 2017. Please click here to access >
"When Snap, the parent of social media platform Snapchat, went public in March without giving all shareholders voting rights, some investors cried foul. But with the number of listed companies in decline, Nasdaq's opinion is on the other side.
Nelson Griggs, head of global listings at the Nasdaq Stock Market, said Nasdaq supports companies that want to go public with a dual-class share structure, as long as investors know what they're getting into. Companies often use multiple share classes - each with different voting rights - to help founders and CEOs maintain control or as a tool to fend off activists. Technology and media companies have been among the biggest users of multiple share classes."
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