dual-class recapitalization

dual-class recapitalization definition - business

dual-class recapitalization

The issue of a second class of common stock, generally with reduced voting power, in exchange for already outstanding shares of common stock. This type of recapitalization typically results in the entrenchment of management that enjoys increased control over corporate affairs.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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