Classified Stock

Classified Stock - A classified stock involves the division of a company or corporation's common stock into various classifications. These classifications include Class A shares and Class B shares. As a rule Class A shares carry more voting rights than Class B shares but the management of the company has the discretion to change that and make Class B shares with greater voting rights than the more preferred Class A shares, which in turn, would have less voting rights. The company or corporate management team may deem to do this so they can focus on the company or corporation's long-term goals - both operational and financial.