What are Class A Shares?

Investors holding traditional Class A shares have voting rights within the company, receive dividends, and will be given first preference in the event of liquidation. When Alphabet Inc. transitioned to what we know as ‘Google’, it offered Class A shares and Class B shares, where holders of Class A shares had voting rights.

Companies that don’t distribute dividends or declare stock splits have highly priced Class A shares. For example, Berkshire Hathaway has highly priced Class A shares at approximately $750,583.17 per share.

Tech giants like Google issue Class A shares to common investors and Class B shares to company insiders. In this scenario, Class B shareholders have a higher voting right than Class A shareholders. Google also issued Class C shares, which are traded and owned by the public.

Depending on the company’s share structure, specific classes of shares receive different dividend rates based on their share class. Class A shareholders receive special dividends that other class shareholders don’t.

Companies offer Class A shareholders the right to vote within the company. Class B usually has fewer voting rights and is offered to the general public.

Different investors have different goals. While some may aim for just capital appreciation, others may want to receive dividends on their investments. When you hold Class A shares, you not only enjoy the dividends but also have your capital appreciate in value.

Class A shareholders are paid at priority, after the debtors, in case of liquidation of the company.