For the A share traded on the Shanghai and Shenzhen stock exchanges, see A share (mainland China).
In finance, a class A share refers to a share classification of common or preferred stock that typically has enhanced benefits with respect to dividends, asset sales, or voting rights compared to Class B or Class C shares. There may be restrictions on any specific issue of class A shares in exchange for the benefits; for example, preferences with regard to dividends may be traded for reduced voting rights. They are often convertible into class B (may not be publicly traded) shares at a favorable rate.[1][2]
Class A share of the Ford Motor Company of Canada, issued 7 October 1930
For example, a company might allocate class A shares to its management giving them 7 times face value of class B shares, while class B shares have the same voting right as class A shares. Companies classify stock for many reasons. In some cases this is to give company insiders a greater degree of power over the company and to provide a better defense against events like hostile takeover attempts.[3]
Class A share is also a way of pricing sales charges (loads) on mutual funds in the United States. In a class A share, the sales load is up front, typically at most 5.75% of the amount invested. In contrast is the class B share that does not have an upfront charge, but instead has higher ongoing expenses in the form of a higher 12B-1 fee, and a contingent deferred sales charge that only applies if the investor redeems shares before a specified period. The maximum A share sales load is decreased for larger investment amounts as a volume discount.
^Medina, Roberto A. (1988). Business Finance. Rex Bookstore, Inc. p. 144. ISBN9789712308048.
^Stickney, Clyde P.; Weil, Roman L.; Schipper, Katherine; Francis, Jennifer (2009). Financial Accounting: An Introduction to Concepts, Methods and Uses. Cengage Learning. ISBN0324651147.
^"Class A Shares". InvestingAnswers. Retrieved October 31, 2017.
January 01, 1970
class, share, share, traded, shanghai, shenzhen, stock, exchanges, share, mainland, china, finance, class, share, refers, share, classification, common, preferred, stock, that, typically, enhanced, benefits, with, respect, dividends, asset, sales, voting, righ. For the A share traded on the Shanghai and Shenzhen stock exchanges see A share mainland China In finance a class A share refers to a share classification of common or preferred stock that typically has enhanced benefits with respect to dividends asset sales or voting rights compared to Class B or Class C shares There may be restrictions on any specific issue of class A shares in exchange for the benefits for example preferences with regard to dividends may be traded for reduced voting rights They are often convertible into class B may not be publicly traded shares at a favorable rate 1 2 Class A share of the Ford Motor Company of Canada issued 7 October 1930 For example a company might allocate class A shares to its management giving them 7 times face value of class B shares while class B shares have the same voting right as class A shares Companies classify stock for many reasons In some cases this is to give company insiders a greater degree of power over the company and to provide a better defense against events like hostile takeover attempts 3 Class A share is also a way of pricing sales charges loads on mutual funds in the United States In a class A share the sales load is up front typically at most 5 75 of the amount invested In contrast is the class B share that does not have an upfront charge but instead has higher ongoing expenses in the form of a higher 12B 1 fee and a contingent deferred sales charge that only applies if the investor redeems shares before a specified period The maximum A share sales load is decreased for larger investment amounts as a volume discount See also editOutline of finance A share mainland China Series A roundReferences edit Medina Roberto A 1988 Business Finance Rex Bookstore Inc p 144 ISBN 9789712308048 Stickney Clyde P Weil Roman L Schipper Katherine Francis Jennifer 2009 Financial Accounting An Introduction to Concepts Methods and Uses Cengage Learning ISBN 0324651147 Class A Shares InvestingAnswers Retrieved October 31 2017 Retrieved from https en wikipedia org w index php title Class A share amp oldid 1171152351, wikipedia, wiki, book, books, library,
