stock class


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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 ?
Teams participated in either the Open or Stock class of the race, which are roughly comparable to professional and amateur, respectively.
color) Stock market teacher Alan Meyer, center, helps seventh- and eighth-graders in his Viewpoint School stock class.
Class B(1) stock represents the Seattle Bank's primary stock class, and institutions are required to purchase a minimum amount of Class B(1) stock in order to participate in the Seattle Bank cooperative.
Karvasek of North Hills, a competitor in the Super Stock class, was awarded most popular driver.
Duoto is a former racer, having won a championship in 1967 in the Late Model stock class at Meyer Speedway.
The Tri-State Mini Stock class races at the Orange Show Speedway in San Bernardino, El Cajon Speedway and Irwindale Speedway.
County Raceway in Palmdale, the youngster finished runner-up in the super stock class.
The Award of Contract by DISC will transfer the current Government responsibility to EHC for supplying Knobs, Dials and Pointers (Federal Stock Class 5355) under an indefinite quantity contract for a base period of one year, with four one-year options on behalf of DISC.
The price of Berkshire stock has dipped steadily since Buffett's warning and the new cheaper stock class dubbed ``Baby Berkshires'' were issued May 9.
Based on a record of timely deliveries of AN/ALR-56C airborne electronic warfare systems and shop replaceable units, LES met and surpassed the stringent criteria and was named to the Blue Ribbon Contractor List for Federal Stock Class 5865 (electronic countermeasures equipment).