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.