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Facebook Class B shares explained

2012-05-06 28 Dailymotion

SUBSCRIBE to Next Media Animation: http://www.youtube.com/subscription_center?add_user=NMAtv<br /><br />Facebook: http://www.facebook.com/NMAtv<br />Webpage: http://www.nma.tv/<br />Twitter @nmatv: https://twitter.com/#!/nmatv<br />Tumblr: http://nmatv.tumblr.com/<br /><br />Facebook kicks off its roadshow Monday for the company's initial public offering, which is expected to raise US$5 billion for the company. Facebook, which trade under will trade under the ticker "FB, will have two share classes: Class A and Class B. <br /><br />Class A shares will be sold to the public and traded on the Nasdaq. Class B shares will be privately held by Facebook insiders, principally Mark Zuckerberg.<br /><br />Zuckerberg's B shares will carry 10 times the voting weight of class A shares. So while he owns just 28% of the company, Zuckerberg will control 57% of the voting rights.<br /><br />As such, the majority owners of Facebook will have little sway over the direction of the company. 

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