What does one class of stock mean?

than one class of stock. A corporation is treated as having one class of stock provided all outstanding shares confer identical rights to distributions and liquidation proceeds. Differences in voting rights are ignored for qualification purposes. Therefore, an S corporation can have

What is a Class B share of stock?

Class B shares are what most people hold in their portfolios, and what you’ll buy from your broker when you type in the ticker symbol. They tend to carry the regular 1:1 voting structure, where one share equals one vote. While they lack the priority of Class A shares, they’re also available at a discount—sometimes a heavy one.

What is the difference in share classes?

Share Classes Definition. Share class is the company’s bifurcation of its shares into different classes on the basis of their voting rights, privileges, ownership restrictions such as dividing the common stock into A shares having the most privileged voting rights and B shares who have less voting rights and so on.