Topic: How To Invest

Power Growth Investor Hotline – Thursday, April 14, 2022

Article Excerpt

SHOPIFY INC., $731.93, is a buy. The company (symbol SHOP on Toronto) offers merchants of all sizes Internet-based software to design, set up and manage e-commerce stores across multiple sales channels. The company also handles digital payments and shipping. This week, Shopify announced it will split its class A and class B shares on a 10-for-1 basis. Shareholders of record as of June 22, 2022, will receive nine more shares on June 28, 2022. Currently, the company’s class A shares carry one vote per share and class B shares carry 10 votes per share. As well, the company will also seek shareholder approval to authorize and issue a new class of shares, called the Founder share, to Tobi Lutke, its CEO and founder. This proposal seeks to preserve the voting power of Lutke, as the Founder share will provide him with a variable number of votes and that combined with his previously owned shares from other classes would represent 40% of the total…