classified stock

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Definitions from WordNet

Noun classified stock has 1 sense

classified stock - common stock classified as A or B where A has certain advantages (e.g., voting power) that B does not
--₁ is a kind of common stock, common shares, ordinary shares

Definitions from the Web

Term: Classified Stock

Description: Classified stock refers to company shares that are divided into different classes or categories with varying rights and privileges. These different classes of stock often have different voting rights, dividend payouts, or claim on company assets. Classified stock is commonly utilized by companies to allow certain shareholders, such as founders or executives, to retain greater control or receive preferential treatment.

Sample Sentences:

The company issued classified stock to ensure the founder maintains majority voting rights.
Investors who hold Class A classified stock are entitled to twice the dividend payout compared to Class B shareholders.
Classified stockholders have priority in receiving dividends before regular shareholders.

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