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 ?
Clients will be able to purchase R6 shares immediately and can also make a direct exchange from previous share classes.
We are already seeing more than 75 per cent of new flows on the platform into clean share classes so advisers are seemingly ready for this change.
Dividend payments on the different share classes are proportional to the stated par value of the stocks ?
Dimensional's R1 and R2 share classes will provide 10 basis point and 25 basis point fees, respectively.
These share class additions to FundVest translate into a true competitive advantage for Pershing clients since it is uncommon for institutional and advisory share classes to be offered on a no-transaction-fee platform.
Furthermore, there is evidence that the lack of understanding of clean share classes actively hinders would-be investors:
David Thompson, managing director, Elevate, said: "Advisers have embraced the control that clean share classes provide over their clients assets.
Clean share classes also provide the clarity and transparency that the customer and the regulator require.
A Guernsey incorporated and registered limited liability closed-ended investment company with a Premium Listing of its US Dollar and Sterling share classes on the Official List.
Elevate has also led the way on offering clean share classes available to advisers and their clients, with over 1,600 clean share class funds available on the platform.
Ivy Funds recently announced a filing with the Securities and Exchange Commission (SEC) for two new fund share classes, designed to provide more choice and flexibility to two key client groups: those who invest in 529 education savings plans and those investing in large employer-sponsored retirement plans.
AXA Wealth today announced that it has made more than 1,000 additional clean share classes available on its Elevate platform.