Class B Shares


DEFINITION of 'Class B Shares'

A classification of common stock that may be accompanied by more or fewer voting rights than Class A shares. Although Class A shares are often thought to carry more voting rights than Class B shares, this is not always the case. Companies will often try to disguise the disadvantages associated with owning shares with fewer voting rights by naming those shares "Class A," and those with more voting rights "Class B."


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BREAKING DOWN 'Class B Shares'

For example, one Class A share may be accompanied by five voting rights, while one Class B share may be accompanied by only one right to vote, or vice versa. A detailed description of a company's different classes of stock is included in the company's bylaws and charter.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Multiple Capital Structure

    The classification of a company's stock and bond offerings into ...
  4. Voting Right

    The right of a stockholder to vote on matters of corporate policy ...
  5. Common Stock

    A security that represents ownership in a corporation. Holders ...
  6. Voting Shares

    Shares that give the stockholder the right to vote on matters ...
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