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.
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 fund's three share classes were untraded Friday, with NBDD last closing at USD0.89, NBDX at USD0.8362 and NBDG at 77.3p.
Cerulli predicted two years ago that zero/zero share classes would continue to rise in popularity.
Another expense that varies among mutual fund share classes is load.
The seven-page guidance was issued by the Division of Investment Management and focuses on disclosure issues and certain procedural requirements for offering variations in mutual fund sales loads and new fund share classes.
Higher-expense share classes result in higher compensation paid to recordkeepers whose fee is paid with revenue sharing.
FINRA said the companies lacked an adequate system to supervise variable annuities with multiple share classes and failed to provide reasonable guidance about the narrow class of customers for whom the cost and features of L-share variable annuities were suitable.
Example 1: Wayne Vaughn invests $20,000 in Mutual Fund XYZ, which offers several share classes. This fund's A shares have a 5% sales commission, which Wayne pays immediately.
Clean share classes are the best choice for those wishing to make the cost of advice as clear as possible for the client and many providers have fully embraced the new system.
Ths permits them to purchase lower cost share classes. But not all lower cost share classes are the same.
They already share classes and other resources but the proposal would see institutions run with an overarching Christian ethos.
In Tibble, the court held that, since the Edison International Investment Trust Committee chose to make retail share classes of three mutual funds available to its 401(k) participants without considering institutional share classes (which charge lower fees but are identical to the retail share classes in all other respects), it had failed to exercise the necessary prudence.
District Court for the Central District of California said that there was no evidence the company considered the different share classes available.