Media Owned by Wealthy Are Quick to Tell You Wealth Taxes Are a Bad Idea

Re:Media Owned by Wealthy Are Quick to Tell You Wealth Taxes... by mac01021 on Friday October 23, 2020 @07:30AM (#24868343)

> you can structure equity so that you retain control even without a large holding of shares (see: Palantir, Facebook).

I'm a little confused about this though. If class A shares have all the votes (while most shares are class B shares), what prevents the market from valuing the class A shares at an extremely high value and the class B shares not at all? When the company finally gets big and stops growing, the source of its value to shareholders will be the dividends that it pays and it will be the voting class A shareholders that decide how dividends are allocated.

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Re:Media Owned by Wealthy Are Quick to Tell You Wealth Taxes... by fossuser on Friday October 23, 2020 @11:20AM (#24870400)

There’s typically a rule that the shares with extra voting power cannot be sold. They automatically convert prior to sale.

Basically they’ve thought of these things and controlled for them already.

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