Hello, can some one please explain to me the difference between Class A, B, and C members in Prop firms? Thank You.
Class A is usually the owners and partners of a firm, and usually the only class of ownership with voting rights in the firm or participation in the profits and losses of the firm as a whole. Classes B, C, and whatever else are usually non-voting, non-participating in the profits and losses of the firm as a whole, just participating in the profits and losses of their particular account. These classes are for the traders. In a way, it is like a General Partner (Class A), and limited partners (Classes B, C, etc...). It is how the firms which provide professional leverage (Echo, Bright, Lieber) have to be structured. -Jim