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JPMorgan Chase & Co.

Visa discloses stake in Dorsey's company, Square

Square

Shares in the mobile payment services company Square rose sharply Friday after Visa disclosed the details of its ownership stake in the company.

While Visa's stake amounts to about 1 percent of the company, and the stake was established at least 5 years ago, investors interpreted the announcement as a major endorsement of Square by Visa, the world's largest payment processing company.

According to a regulatory filing, Visa owns 4.2 million of Square's Class B shares. While Class B shares are not traded publicly, Visa could convert up to 3.5 million of its Class B shares to Class A, which would give Visa a 9.99 percent ownership of that class of shares. That conversion...

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