Replies to post #124 on Brookfield Asset Management Inc (BAM)

[MrBankRoll]

Hmmm? Interesting. Seems it's a way for management to give themselves a bonus. I don't think us common folk get squat. Could be wrong. I-Man may be able to explain it better.

Class A Shares
Definition

Typically, the most preferred tier of classified stock, offering more voting rights than Class B shares. Class A shares are designed to insulate management from the short-term swings of Wall Street, by allowing those in management to control a small amount of the equity of the company but still maintain voting power. These types of shares are not sold to the public and cannot be traded, which supporters of the dual-share system say allows management to focus on long-term goals.

[Investorman]

BAM shares that we own are class A shares.

40% of the new partnership will be owned by BAM and the company will receive dividends and growth benefits for that share. Those will be reflected in BAM's 10k numbers.

The other 60% of the new partnership will be spun off as new shares to existing BAM shareholders.

I need to do some in-depth research to evaluate why they are doing this and what the long term impact will be. I suspect they are insulating these long term assets from the more volatile ones and providing a cash dividend vehicle for the coupon clippers.