I am looking at the company Lennar. I noticed that it has two classes of common stock. The symbol for the two classes are LEN and LEN.B. As far as I can tell, the second one (LEN.B) is at least as good as the first one. In addition LEN.B has more voting. However, the share price of LEN.B is less than LEN. Therefore, I am thinking I missing something. What am I missing?

1 Answer 1


The only thing you are missing is the liquidity of Class B.

Class A has a 253mm share public float whereas Class B has a 15mm share public float as of April 21 on MarketWatch. Lennar also addresses this on page 18 of the 2021 10K (here).

 "The trading price of our Class B common stock has been substantially lower 
 than that of our Class A common stock...  The limited liquidity could make it 
 difficult for a holder of even a relatively small number of shares of our Class 
 B common stock to dispose of the stock without materially reducing the trading 
 price of the Class B common stock."

Your intuition is correct that the reverse situation is usually true (ie higher votes adds a premium to value). As an individual investor, voting rights and liquidity for public securities are non-issues (as long as the trade is on one of the major exchanges and the trade doesn't involve significant amounts of the outstanding security).

  • 2
    +1 except liquidity does matter for individuals as well since someone else's block sale could depress the stock value for you for months due to lack of liquidity.
    – xiaomy
    Apr 21, 2022 at 21:47

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