Business, Legal & Accounting Glossary
Class B shares are a classification of common stock that may or may not have more voting rights than Class A shares – typically thought to be the preferred class. It is a common misconception that Class B shares carry less weight than Class A, which is not always the case with Class B shares. Often corporations mask the disadvantages of owning shares with less voting rights by classifying those shares as “Class A shares”, and naming those with more voting rights “Class B shares”. Class B shares are described in a company’s charter and bylaws. Class B shares are also associated with mutual funds. Mutual fund shares that are considered Class B shares are often payable if the fund is sold within four to six years. Class B shares of this type carry higher expense ratios than Class A mutual fund shares. These Class B shares can often be converted to Class A.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Class B Shares are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February, 2020 | 0 Views.