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What are the different classes of a company's stock, like Class A versus Class B shares?

Answer

Some companies issue more than one class of common stock, and these are different from mutual fund share classes. Typically the classes carry different voting rights: founders or insiders may hold Class B shares with ten votes each while public investors buy Class A shares with one vote, letting leadership keep control even with a minority economic stake. Alphabet is a well-known example, with Class A (GOOGL), Class B (held by insiders), and non-voting Class C (GOOG) shares. Economically the classes usually have the same claim on profits and dividends, so for a small investor the price and dividends matter more than the votes. Check which ticker you're buying, since the classes can trade at slightly different prices, and know that voting power rarely affects a diversified long-term investor's returns.

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