Classified Shares

DEFINITION of 'Classified Shares'

The separation of company equity into more than one class of common shares, usually called "Class A" and "Class B."

Also known as "classified stock".

BREAKING DOWN 'Classified Shares'

The specific features of each class are set out in the corporate charter and bylaws. Voting privileges are the main reason companies create different classes, although liquidation and dividend rights may also be involved.

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RELATED FAQS
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    Discover how a company can break down its common stock into multiple classes and how these classes differ from one another ... Read Answer >>
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    Learn why Warren Buffet created Berkshire Hathaway Class B shares and discover the main differences between Class A and Class ... Read Answer >>
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    Firstly, do not confuse different classes of common stock with preferred stock. Preferred shares are an entirely different ... Read Answer >>
  4. How are a mutual fund's C shares different from A and B shares?

    Learn how a class C share differs from a class A or B share in relation to a mutual fund. Read Answer >>
  5. Is the upfront cost of Class A mutual fund shares worth it?

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  6. Which class (class A, B, C) shares should I purchase if my time horizon is long term, ...

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