Los Angeles technology company Snap Inc.’s historic decision to go public last week with an issuance of only nonvoting shares sets a damaging precedent for the stock market, leading investors warned Thursday. The investor experts put the blame on stock exchanges that, to drum up business, allow companies to sell nonvoting stock. He cautioned that nonvoting stock would remain rare compared with structures in which top executives consolidate power by holding several votes per share. Bertsch of the investor council said he also would ask companies to make nonvoting shares temporary. paresh.dave@latimes.com / PGPTwitter: @peard33ALSOSnapchat maker's stock keeps falling — and analysts think it'll drop even moreEvan Spiegel has described Snap as a camera company.

Source: Los Angeles Times March 09, 2017 19:50 UTC