Dual-Class Stock Structures and Society: How Unequal Voting Rights Affect Innovation, Insiders, Investors, and the Public

Abstract

Publicly traded stocks often have less legal rights attached to them (in terms of voting, for example) than the class of stocks held by company insiders. This paper analyzes the winners and losers of such structures with multiple classes of stocks, and whether regulation is appropriate. I argue that governmental regulation would cause more harm than good, and that self-regulation within the industry--which itself is made up of opposing interests--is more appropriate.