classified stock

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

classified stock

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The EPI analysis is based on methodologies and assumptions from a 2015 report released by President Barack Obama's Council of Economic Advisers, which underpinned the original fiduciary rule developed by his Labor Department, and an April 2017 report from Morningstar focused on how new mutual fund share classes could reduce conflicted financial advice.
Also inside this issue, Steve Saxon ( looks at the new, expanded definition of fiduciary, Fred Reish ( looks at the duty to understand mutual fund share classes and costs, and Mike Barry ( talks about the next "bubble" -- public pension funding.
Those funds also will go to brokerage clients who were steered into more expensive mutual fund share classes.