classified stock

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Related to Share Classes: Class B Shares, Mutual Fund Share Classes

Classified stock

The division of stock into more than one class of common stock, usually called Class A and Class B. The specific features of each class, which are set out in the charter and bylaws, usually give certain advantages to the Class A shares, such as increased voting power.

Classified Stock

1. A type of stock in a publicly-traded company that issues more than one type of stock. Each type of classified stock has distinct rights attached to it. Two common classified stocks are preferred stock, which carries the right to guaranteed dividends, and common stock, which carries the right to vote in the annual meeting.

2. In mutual funds, a stock with a particular load. The load, which is the sales fee for buying into the mutual fund, is charged at different times depending on the stock class. For example, a class A stock has a load that is paid up front, while a class B stock has a load that is paid when one sells the shares in the mutual fund.

classified stock

References in periodicals archive ?
Existing funds now being offered in the two new institutional share classes are the Fidelity Short-Term Treasury Index Fund, Fidelity Intermediate Term Treasury Index Fund and Fidelity Intermediate Term Treasury Index Fund.
The seven-page guidance was issued by the Division of Investment Management and focuses on disclosure issues and certain procedural requirements for offering variations in mutual fund sales loads and new fund share classes.
Looking deeper at net flows, the picture grows even clearer: "Institutional and retirement share classes brought in positive net flows in 2015 and June 2016, $143.
The court determined that the plan sponsor had the final say and thus made the decision whether to offer certain mutual funds and share classes, notwithstanding discussions and negotiations with Merrill Lynch.
These new share classes have been added in response to significant interest in the range of funds managed ENBD AM from investors seeking Sterling denominated investments.
These share classes are being offered to create a diverse set of funds for advisors, Lewbart continues.
Morningstar noted that clean share classes "should create a level playing field for asset managers, so that advisors evaluate a fund on its investment quality, its role in an investor's portfolio, and its fit to the goals of the investor.
Service providers utilize different share classes in the distribution of their fund shares through various broker, bank, recordkeeping, third-party administrator, and investment advisory channels.
The SEC's Office of Compliance Inspections and Examinations issued a Risk Alert announcing its Share Class Initiative, stating that SEC examiners will assess whether advisors have conflicts of interest when making recommendations about share classes to their clients.
As a result, committees need to use their plan's purchasing power to select lower-cost share classes.
R shares, or "retirement shares," are share classes designed for use by retirement plans.
Related on ThinkAdvisor: New Share Classes in a DOL Fiduciary World)