When google made its first issue of common stock

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When Google made its first issue of common stock, the company created two classes of shares. The A shares, which were sold to the public, had 1 vote each, while the B shares, which were owned by the founders, had 10 votes each.

Although both classes of shares had the same cash-flow rights, B shares were typically sold at a premium over A shares. Why? Explain.

Reference no: EM132506046

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