- Share Class
- A designation applied to a specified type of security such as common stock or mutual fund units. Companies that have more than one class of common stock usually identify a given class with alphabetic markers, such as "Class A" shares and "Class B" shares. Different share classes within the same entity typically confer different rights on their owners.
For example, a public company may offer two classes of common stock outstanding: Class A common stock and Class B common stock. This dual-class structure is typically decided on when a company first goes public and issues stock in the primary market.
For example, a private company that is undertaking an initial public offering (IPO) may choose to issue Class A shares to its new investors, while the original owners of the company receive Class B shares. In this case, the Class B shares would typically have enhanced voting rights. A dual-class structure such as this would be used if the original owners of the company wanted to sell the majority of their ownership stake in the firm, but still maintain majority voting rights.
As an investor, it's important to know what class of shares you are buying when you purchase common stock in a public company.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
class — n: a group of persons or things having characteristics in common: as a: a group of persons who have some common relationship to a person making a will and are designated to receive a gift under the will but whose identities will not be determined … Law dictionary
class A/B/C share — UK US noun [C, usually plural] (also A/B/C share) FINANCE, STOCK MARKET ► one of the types of shares into which a company s common stock is divided, each of which offers shareholders a different voting right, payment amount, etc.: »Class A shares … Financial and business terms
class rights — Each class of share has specific rights, usually contained in the Articles of Association or the documentation creating the shares. These relate to dividend, return of capital, voting and other similar rights. Any variation of class rights must… … Law dictionary
class action — n: an action in which a representative plaintiff sues or a representative defendant is sued on behalf of a class of plaintiffs or defendants who have the same interests in the litigation as their representative and whose rights or liabilities can … Law dictionary
Class stratification — is a form of social stratification in which a society tends to divide into separate classes whose members have differential access to resources and power. An economic and cultural rift usually exists between different classes. People are usually… … Wikipedia
Class A — may refer to: Class A airfield, a standardised design for military airfields built throughout Britain from 1942 Class A airspace, an airspace class defined by the ICAO class A amplifier, a category of electronic amplifier Class A baseball, one of … Wikipedia
class — class1 [klas, kläs] n. [Fr classe < L classis, class or division of the Roman people; akin to calare, to call: see CLAMOR] 1. a number of people or things grouped together because of certain likenesses or common traits; kind; sort; category 2 … English World dictionary
Class (film) — Class Theatrical release poster Directed by Lewis John Carlino Produced by Martin Ransoho … Wikipedia
Class II PI 3-kinases — are a subgroup of the enzyme family, phosphoinositide 3 kinase that share a common protein domain structure, substrate specificity and method of activation. Class II PI 3 kinases were the most recently identified class of PI 3 kinases and little… … Wikipedia
class meetings — Each class of share has specific rights, usually contained in the Articles of Association or the documentation creating the shares. These relate to dividend, return of capital, voting and other similar rights. Any variation of class rights must… … Law dictionary