What are Class B shares?

Class B shares are a classification of common stock that may be accompanied by more or fewer voting rights than Class A shares. Class B shares may also have lower repayment priority in the event of a bankruptcy. A detailed description of a company's different classes of stock is included in the company's prospectus, bylaws, and charter .

What are Class A shares?

Class A shares are common stocks, as are the vast majority of shares issued by a public company. Common shares are an ownership interest in a company and entitle purchasers to a portion of the profits earned. Investors in common shares —also known as ordinary shares—are usually given at least one vote for each share they hold.

Are class A shares better than Class B shares?

While the specific attributes of Class A shares depend on the company, they generally come with more voting power and a higher priority for dividends and profit in the event of liquidation. Class A shares may be more expensive than Class B shares, or may not be available to the general public.