What is a Class A share?

Class A shares refer to a classification of common stock that was traditionally accompanied by more voting rights than Class B shares. However, there is no legal requirement that companies structure their share classes this way. For example, Meta (formerly Facebook) awards more voting rights to Class B shares.

What are Google Class C shares?

Finally, Class C shares are publicly owned and traded but do not have any voting power. This Google share class structure is popular among technology companies. In this system, Class A shares are still premium shares with more voting rights, at least compared to Class C shares.

Are traditional Class A shares sold to the public?

Traditional Class A shares are not sold to the public and also can't be traded by the holders of the shares. Traditional Class A shares are only one type of Class A share, and companies are free to structure themselves differently. Class A shares can be used to provide a company's management team with voting power in a volatile public market.

Which share Class is best?

Which share class is best depends on the individual and their investing goals. That being said, Class A shares are usually convertible in the event of a sale and offer much greater voting privileges than Class B or Class C shares. Class A and Class B shares differ in their availability, convertibility, and power as it relates to voting.