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Quantitative Finance · Glossary

What is Dual-class share?

Definition 12.1 Strategies I: Equities and Futures · Chapter 12 — Share Classes, Holding Companies, Closed-End Funds and SPACs

A dual-class share structure gives a company two or more listed classes of common stock with the same claim on its cash flows but different rights (usually votes), so that the classes should trade close to each other and their spread reflects the value of the difference in rights, liquidity and index eligibility.

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