Stocks have become a common medium of investment today. Thus, detailed knowledge of every type of stock is essential to purchasing their respective shares.
SPWRA and SPWRB are two types of stocks SunPower Corporation offers. While they may seem similar, they have several different features.
Key Takeaways
- SPWRA (SunPower Corporation Class A) and SPWRB (SunPower Corporation Class B) are two classes of SunPower Corporation’s common stock.
- Class A shares have one vote per share, while Class B shares have ten votes per share, giving Class B shareholders more voting power.
- The primary difference between the two share classes lies in voting rights, while economic interests and dividend rights remain the same.
SPWRA vs SPWRB
SPWRA is a Class A common stock issued by SunPower Corporation, having one vote per share. SPWRB is a Class B common stock issued by SunPower Corporation, having ten votes per share, giving shareholders greater voting power and influence over company decisions, and are not publicly traded.
SPWRA refers to a class of common stock shares owned by SunPower Corporation. SPWRA offers enhanced benefits to shareholders. Some of these include dividend priority and liquidation preferences.
Like any other stock, the price or value of SPWRA varies according to several market forces. SPWRA shares ensure that people who own these shares are paid first at the time of exit.
SPWRB refers to a stock of shares associated with SunPower Corporation. A prominent merit of SPWRB is that it is available to the general public.
However, such shares offer a lower dividend priority to its shareholders. SPWRB amounts to more than 42 million shares in the SunPower Corporation.
Comparison Table
| Parameters of Comparison | SPWRA | SPWRB |
|---|---|---|
| Type | SPWRB is a type B stock share, and thus it is tradable. | SPWRB provides fewer voting rights per share than SPWRA. |
| Voting Rights | SPWRA provides higher voting rights for each share than SPWRB. | SPWRB provides fewer voting rights per share than SPWRA. . |
| Status | SPWRA is considered superior to SPWRB. | SPWRB is considered inferior to SPWRA. |
| Price | SPWRA is more expensive than SPWRB. | SPWRB is cheaper than SPWRA. |
| Risk Involved | SPWRA is significantly more volatile and risky than SPWRB. | SPWRB is less volatile and risky than SPWRA. |
What is SPWRA?
SPWRA refers to a stock of shares associated with SunPower Corporation. SPWRA amounts to more than 42 million shares in the SunPower Corporation.
SPWRA plays a distinct role in the components and systems of SPWRB. In addition, SPWRB allows the senior management of companies to become shareholders.
There are several exciting features of SPWRA. The most distinctive feature of SPWRB, which is an advantage for shareholders, is that it offers eight times more voting rights.
In other words, SPWRB accounts for eight times more value rights per share. Thus, SPWRB is classified as an outstanding share in the SunPower Corporation. Therefore, the shareholders have more authority and say in several crucial aspects.
SPWRA shares are relatively more expensive to purchase. However, a disadvantage of SPWRB is that they are significantly risky and volatile. Thus, risk-taking is an essential trait to purchase SPWRA shares.
In situations wherein there is little to no difference between the price of SPWRA and SPWRB, individuals choose to purchase the shares of SPWRA.
SPWRA comprises stocks that are owned by the family or the original shares. Consequently, SPWRA provides an added advantage to shareholders.
At most times, SPWRA shares are considered to have a great value as they provide facilities such as priority dividends and liquidation preferences. To conclude, SPWRA has their own set of merits and demerits.
What is SPWRB?
SPWRB refers to a class of common stock shares owned by SunPower Corporation. SunPower Corporation is a company that deals with solar electric power technologies and products.
SPWRB shares have a low repayment priority in case of bankruptcy. They offer a lower dividend priority to shareholders.
SPWRB is, thus, a stock that can be purchased by individuals and after that, traded by them at a specific price. SPWRA has more than 42 million shares that different enterprises and individuals own.
Several features are peculiar to SPWRB.
SPWRB stocks offer considerable security to their shareholders because they are significantly less volatile or risky to invest in.
They have a relatively cheap purchase rate and can be traded relatively easily. This, in turn, allows shareholders to purchase a large proportion of SPWRB shares since they are cost-effective.
SPWRB allows for one voting right for each share. As a result, SPWRB shares are categorized as inferior because of the fewer voting rights they offer to shareholders.
There are several reasons for purchasing the shares of SPWRA. The most prominent reasons are profit maximization and income generation.
Main Differences Between SPWRA and SPWRB
- SPWRA shares offer significantly higher voting rights to its shareholders than SPWRB.
- SPWRA shares are subject to more fluctuations in a volatile public market than SPWRB shares.
- SPWRA provides ordinary access to assets and dividends. On the other hand, SPWRB includes priority access to assets and dividends.
- SPWRA shares offer more privileges to its shareholders than SPWRB shares.
- While SPWRA is a type A share, SPWRB is a type B share.
- https://www.investopedia.com/ask/answers/062215/what-difference-between-class-shares-and-other-common-shares-companys-stock.asp
- https://stocktwits.com/symbol/SPWRA
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
Interesting comparison between the two types of shares. One would have to carefully assess the benefits and risks before deciding which one to invest in.
The author provides a comprehensive explanation of the differences between SPWRA and SPWRB. It’s essential for potential investors to be aware of these variations.
The priority of dividends and liquidation rights should be considered while making an investment decision. Both SPWRA and SPWRB have unique features that cater to different types of shareholders.
The voting rights play a significant role in the distinction between SPWRA and SPWRB. This adds an interesting layer of complexity to the investment decision.
This article has provided a detailed explanation of the different types of shares offered by Sunpower Corporation. It’s important to understand these differences before purchasing either of the shares.
The voting differences between SPWRA and SPWRB are quite significant. It’s surprising that the price of SPWRB is lower despite fewer voting rights.