stock class


Also found in: Dictionary, Thesaurus.
Related to stock class: Class A Shares

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.

stock class

1. A category of capital stock issued by a company and having specific rights or characteristics. Most firms have only a single class of stock outstanding. Thus, every share has exactly the same rights as every other share. But some companies have two or more classes of capital stock designated as class A, class B, and so forth. For example, one class may have controlling voting rights but both classes may share equally in dividends. In general, a firm issues different classes of stock when it wishes to sell one class to the public and reserve another class for its founders. Also called class, classified stock. See also common stock.
2. A category of stock issued by a mutual fund. Funds sometimes issue multiple classes of stock. A fund, for example, may have one class of shares that carries a sales fee and another class of shares that has a contingent deferred sales fee and a 12b-1 fee, but no initial sales fee. Both classes of shares would be based on the same portfolio of securities.
Case Study In early 1996, fabled investor Warren Buffett announced that Berkshire Hathaway planned its first equity offering in 30 years and would create a new class B common stock. At the same time, the company would designate existing shares as class A stock. The new shares would be offered to investors at one-thirtieth the price of a class A share, which, at the time of the announcement, was trading at an unbelievable $31,500. Approximately $100 million worth of the new shares were expected to be offered, so that they would qualify for listing on the New York Stock Exchange. Owners of class A shares could exchange their shares for class B stock at a rate of 30 shares of class B stock for each share of class A stock, but owners of class B stock would not be permitted to exchange shares for class A stock. At the time of the announcement, Buffett owned 40% of Berkshire Hathaway common stock. He said the decision to issue the lower-priced class B shares was a response to activity by investment trusts that specialized in owning shares of Berkshire Hathaway stock.
References in periodicals archive ?
The Company intends to monitor the closing bid price for each stock class and will consider whether to implement any available options to regain compliance with the continued listing requirements.
The new factory stock class is the most production-specification class in the history of Best in the Desert.
But it was Bin Hindi who rode a perfect race pursuing 777 rider Chris Wilkinson to ultimately overtake the Englishman on the penultimate lap and seal a well-deserved win in the Pro Runabout Stock class.
Audi bank's preferred stock class C remained unchanged at $25 after a day trade of 1,463 shares at $36,575.
Jimmy Sloan of Palm Desert was fifth and won the track championship in the Super Stock class.
Team HUMMER competes with the H3 Alpha, H2 SUT and H3 in the stock class, which features production-based vehicles with stock frames, stock suspension designs and production-based engines.
The modified Tundra will be on display at SEMA from November 4-7 before heading down to Ensenada, Mexico to compete in the Full Size Stock class from November 12-16.
12 per share on each of the firm's three classes of common stock class A voting common stock (NYSE: AGM.
Hennie Sauerman (Liberty Kawasaki) will be defending his crown in the 1000 Stock Class where he will face last year's 600 Stock Class Champion and current UAE Sportbike Champion Hussain Al Kooheji (Al Yousuf Yamaha) who is moving up to the "big banger" class.
She plays volleyball for her high school team in Westlake Village and drives a Ford Mustang in the pony stock class at Ventura Country Raceway.
00% Series A mandatory convertible preferred stock Class A.
NYSE: AGM) has declared a quarterly dividend on each of the corpororation's three classes of common stock class A Voting common stock (AGM-A), class B Voting common stock (not listed on any exchange), and Class C Non-Voting common stock (NYSE: AGM).