Why is common stock divided into different share classes?

Common stock may be subdivided into share classes with distinct voting rights (or none at all) before it is issued. Shares from different share classes often have the same economic interest in the company's underlying business and profits. At other times, different share classes represent distinct economic stakes as well.

Can class A shares be converted into common stock?

Class A shares can be converted into common stock in the event of a sale. Some companies will restrict Class A ownership to those in the c-suite. Class A shares are common stocks, as are the vast majority of shares issued by a public company.

Is there a unified classification of common stock?

There is no unified classification of common stock. However, some companies may issue two classes of common stock. In most cases, a company will issue one class of voting shares and another class of non-voting (or with less voting power) shares. The main rationale for using dual classification is to preserve control over the company.