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Class A share
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<p>In <a href="/facts/Finance/fLh1GgN8">finance</a>, a class A share refers to a <a href="/facts/Share_class/3UNWo4u7">share classification</a> of <a href="/facts/Common_stock/R0jYTr9Q">common</a> or <a href="/facts/Preferred_stock/vzqjmC7H">preferred</a> stock that typically has enhanced benefits with respect to <a href="/facts/Dividends/Na89kYjp">dividends</a>, asset sales, or voting rights compared to <a href="/facts/Class_B_share/dVAgJl4H">Class B</a> or <a href="/facts/Class_C_share/dVAgJl4H">Class C shares</a>. There may be restrictions on any specific issue of class A shares in exchange for the benefits; for example, preferences with regard to dividends may be traded for <i>reduced</i> voting rights. They are often convertible into class B (may not be <a href="/facts/Publicly_traded/tnJQvSdR">publicly traded</a>) shares at a favorable rate. </p><p>For example, a company might allocate class A shares to its management giving them 7 times face value of class B shares, while class B shares have the same voting right as class A shares. Companies classify stock for many reasons. In some cases this is to give company insiders a greater degree of power over the company and to provide a better defense against events like <a href="/facts/Hostile_takeover/JGfEbTy0">hostile takeover</a> attempts. </p><p><i>Class A share</i> is also a way of pricing sales charges (loads) on <a href="/facts/Mutual_fund/gyz5AKUP">mutual funds</a> in the <a href="/facts/United_States/P0sCdLe5">United States</a>. In a class A share, the sales load is up front, typically at most 5.75% of the amount invested. In contrast is the class B share that does not have an upfront charge, but instead has higher ongoing expenses in the form of a higher <a href="/facts/Mutual_fund_fees_and_expenses/z34PuWKY">12B-1 fee</a>, and a contingent deferred sales charge that only applies if the investor redeems shares before a specified period. The maximum A share sales load is decreased for larger investment amounts as a volume discount. </p>