class b stock

Discussion in 'Stocks' started by dividend, May 13, 2006.

  1. if a class A stock has 10x the vote of class B, and A is converitble to 10 class B, then the price of a class A share will be 10x the price of class B. in this case why would a company issue class B stock?

    is it so that if the price of class A is too high then B will be more "approachable" to the public? it seems to me that they are both the same thing.

    ---edit---
    and my second question is what happens if class b has no voting rights. how would this share even be valuated?