When a business issues two share classes, it is known as a dual-class stock. Class A and Class B shares, for example, can make up a dual-class stock structure. In terms of voting rights and dividend payments, these shares might differ.
When a corporation issues several share classes of stock, one is usually made available to the general public, while the other is reserved for the firm’s founders, executives, and family. The public class often has limited or no voting rights, whereas the founders and executives’ class has higher voting power and frequently provides for majority control of the firm.