Why investors should steer clear of Snapchat's dual-class shares

Snapchat’s parent company (Snap) is preparing for an intial public offering (IPO). But it seems that ordinary shareholders will not have voting rights. Shares in the newly public Snap will either be dual-class or multi-class.

A dual-class structure creates two classes of shares, each with different voting rights; a multi-class structure has multiple share classes. This structure is allowed in the United States. However, with a few exceptions, it is not permitted in Australia.

A dual-class share structure is what allows Mark Zuckerberg, for example, to control Facebook. Zuckerberg only owns about 15%