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