Stocks have become a common medium of investment today. Thus, a detailed knowledge of every type of stock is essential to purchase their respective stock shares. Both SPWRA and SPWRB are two types of stocks offered by the SunPower Corporation. While they may seem similar, they have several different features.
SPWRA vs SPWRB
The main difference between SPWRA and SPWRB is that because SPWRA is a type A share, it can’t be traded by shareholders. Furthermore, SPWRA shares are not sold to the general public. In contrast, SPWRB is a type B share. Therefore, it is accessible to ordinary investors and can be traded with significant ease.
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 that have an association 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 Between SPWRA and SPWRB
| Parameters of Comparison | SPWRA | SPWRB |
| Type | SPWRA is a Type A stock share and thus, it is usually non-tradable. | SPWRB is a type B stock share and thus it is usually tradable. |
| Voting Rights | SPWRA usually provides higher voting rights for each share than SPWRB. | SPWRB usually provides fewer voting rights per share than SPWRA. . |
| Status | SPWRA is generally considered superior to SPWRB. | SPWRB is generally 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 that have an association 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 interesting features about 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 a superior share in the SunPower Corporation. Thus, 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 in nature. 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 often choose to purchase the shares of SPWRA.
SPWRA comprises stocks that are owned by family or the original shares. Consequently, SPWRA often 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 dividend and liquidation preferences. To conclude, SPWRA have 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 refers to a company that deals with solar electric power technologies and products. SPWRB shares usually 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 thereafter, traded by them at a certain price. SPWRA has more than 42 million shares that are owned by different enterprises and individuals. There are several features that are peculiar to SPWRB.
SPWRB stocks offer a considerable level of security to its shareholders because they are significantly less volatile or risky to invest in. They have a relatively cheap purchase rate and can also be traded with relative ease. This, in turn, allows shareholders to purchase a large proportion of SPWRB shares since they are cost effective.
SPWRB usually allows for one voting right for each share. As a result, SPWRB shares are usually categorized as inferior shares because of the relatively fewer voting rights they offer to shareholders. There are several reasons for purchasing the shares of SPWRA. The most prominent reasons are often profit maximisation 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 provides 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.
Conclusion
Thus, SPWRA and SPWRB have considerable differences. SPWRB stocks offer more security to its shareholders than SPWRB shares. In contrast, a significant demerit of SPWRA is their unavailability to the general public. However, on the bright side, SPWRA shareholder have more clout than SPWRB shareholder due to their voting rights.
There are multi-facet motives behind investments in the shares of both SPWRA and SPWRB. One of the commonplace reasons, however, is profit maximisation and income generation. At most times, SPWRA shares are considered to have a great value. Therefore, both SPWRA and SPWRB are shares of the SunPower Corporation that have certain visible differences. The factors of differentiation include costs, type of share, risk behaviour, and voting rights.
References
- https://www.investopedia.com/ask/answers/062215/what-difference-between-class-shares-and-other-common-shares-companys-stock.asp
- https://stocktwits.com/symbol/SPWRA