Classified stock is one tool companies can use to meet special needs such as when owners of a start-up firm need capital but don't want to relinquish control of the firm.

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Classified stock allows for different classes of shares, which can be used to give certain shareholders more voting power and control while still raising capital through the issuance of additional shares of a different class. This can be useful for companies that want to retain control with their founders or a specific group of shareholders while still allowing for future investment.

Classified Stock Is One Tool Companies Can Use to Meet