Equity Jurisdictions, Classes, and the Voting Process

Free CFA Level I lesson in Equity Investments. 15 min read, ~2,214 words.

Common shares carry a residual claim, votes, and a dividend right (not guaranteed); preferred shares carry priority dividends, liquidation priority, and usually no vote. Dual-class structures (Class A vs Class B) split economic and voting rights asymmetrically, letting founders keep control with minority economics; some indices exclude them. Common-law jurisdictions...