Employees and Investors of private companies hold different class(es) of stock.<p>Employees (and Founders) have common stock, while Investors get preferred stock.<p>Preferred stock carries with it a &quot;liquidation preference&quot;, which basically means holders of that stock get paid out first during a liquidity event, including some multiple of their original investment. What ever is left, is divided among the holders of common stock.<p>If the company is publicly traded, then all owners of stock hold the same class of stock (common).