Creating two classes of shares, only one of which will grow in value is called:

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This is called an estate freeze, which involves creating different classes of shares where one class (usually preferred shares) allows the owner to receive a fixed dividend but does not participate in any future growth of the company, while the other class (usually common shares) has no set dividend but will benefit from any future growth. This is often done for estate planning purposes to allow the owner to control the company and receive income while transferring future growth potential to other family members or business partners.

Creating Two Classes of Shares, Only One of Which Will