Multiple Capital Structure
Definition of 'Multiple Capital Structure'The classification of a company's stock and bond offerings into different classes. Each class will have different characteristics in order to meet the needs of a wider range of investors than would be possible by issuing just one class of stock. The individual components have varying required rates of return affecting the weighted average cost of capital. |
|
Investopedia explains 'Multiple Capital Structure'For example, Berkshire Hathaway's common stock is divided into class A and class B shares. The class A shares (BRK.A) have more voting rights and can be converted to class B shares. The class B shares (BRK.B) have fewer voting rights and cannot be converted to class A shares. Class A shareholders have 0.5% of the voting rights that B shareholder do. |
Related Definitions
Articles Of Interest
-
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
A Primer On Preferred Stocks
Offering both income and relative security, these uncommon shares may work for you. -
Introduction To Convertible Preferred Shares
These securities offer an answer for investors who want the profit potential of stocks but not the risk. -
Conglomerates: Cash Cows Or Corporate Chaos?
Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better. -
Warren Buffett: The Road To Riches
Find out how he went from selling soft drinks to buying up companies and making billions of dollars. -
The NYSE And Nasdaq: How They Work
Learn some of the important differences in the way these exchanges operate and the securities that trade on them. -
Everything Investors Need To Know About Earnings
We go over the concepts behind the excitement over the most important figure in the stock market. -
Is a dividend reduction a signal to sell?
Although a dividend reduction is generally viewed as a signal to sell, the decision is not as clear-cut as if the dividend were to be eliminated altogether, which would be an unequivocal sell ... -
Are The NYSE Trading Floor's Days Numbered?
The Intercontinental Exchange plans to buy the NYSE Euronextfor $8.2 billion. This article examines the implications of the potential sale. -
Has High Frequency Trading Ruined The Stock Market For The Rest Of Us?
HFT is a controversial trading strategy. This article looks at how HFT affects the retail investor.
Free Annual Reports