Share class

In finance, a share class or share classification are different types of shares in company stock that have different levels of voting rights. For example, a company might create two classes of shares class A share and a class B share where the class A shares have less rights than class B shareholders. This may be done to maintain control of a company by a group of shareholders or to make a company more difficult to take over.[1]

For example, a company may create preferred stock as a poison pill that so that all Shareholder of common stock cannot agree to a merger or takeover plan.

Classes

Companies can have the following classes:[2]

• Ordinary shares
• Preference shares
• Non-voting stock
• Redeemable shares
• Convertible shares
• Deferred shares

See also

• Partly paid
• Phantom stock
• Restricted stock
• Shareholder
• Stock option

References

1. "What types of share can a company have?". inform direct. May 9, 2019.
2. "How Many Types or Classes of Shares Can a Company Have?". Retrieved June 9, 2019.