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.

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.

classified stock

References in periodicals archive ?
The Company can regain compliance related to this requirement on either or both stock classes if, at any time before March 15, 2010, the closing bid price is at or above the $1.
The contract covers nine (9) Federal Stock Classes (FSC) and sixty-six (66) unique National Item Identification Numbers (NIINs) and allows for AFMC-wide decentralized ordering.
Other than voting rights, the two stock classes were identical.