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class a shares

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Financial Dictionary

Class A Shares

A classification of common stock that may be accompanied by more or less voting rights than Class B shares. Although Class A shares are often thought to carry more voting rights than Class B shares, this is not always the case. Companies will often try to disguise the disadvantages associated with owning shares with less voting rights by naming those shares "Class A", and those with more voting rights "Class B".

Investopedia Commentary

For example, one Class A share may be accompanied by five voting rights, while one Class B share may be accompanied by only one right to vote, or vice versa. A detailed description of a company's different classes of stock is included in the company's bylaws and charter.

Related Links

Stock Basics Tutorial
The Two Sides of Dual-Class Shares

See also: Class B Shares, Common Stock, Corporate Charter, Equity, Preferred Stock, Shareholder, Stock, Voting Right, Voting Shares

Also spelled: a class

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